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Agenda Packet 03/22/2022Town of Trophy Club Meeting Agenda Packet Town Council 1 Trophy Wood Drive Trophy Club, Texas 76262 March 22, 2022 7:00 PM Council Chambers CALL TO ORDER AND ANNOUNCE A QUORUM ­ Mayor Fleury INVOCATION led by Lead Pastor Joel Quile of Bara Church  PLEDGES led by Mayor Pro Tem Lamont Pledge of Allegiance to the American Flag. Pledge of Allegiance to the Texas Flag. PUBLIC COMMENT(S) This is an opportunity for citizens to address the Council on any matter. The Council is not permitted to discuss or take action on any presentations made. Presentations are limited to matters over which the Council has authority. Speakers have up to four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or you may email mayorandcouncil@trophyclub.org ANNOUNCEMENTS AND REPORTS 1.Recognition of BNHS Football Team and Coaches for a Historic Football Season. (Mayor Fleury) 2.Business Spotlight – Wonderland Montessori School, Laura Roark. (Mayor Fleury) 3.Parks and Recreation Board Update. (T. Jaramillo) 4.Announcement of Interim Fire Chief David Jones. (W. Carroll) CONSENT AGENDA 5.Take appropriate action to approve the Town Council Meeting Minutes of February 22, 2022. (L. Vacek) 6.Take appropriate action to adopt Ordinance 2022­04 amending the Fee Schedules of the Town of Trophy Club. (M. Erwin) 7.Take appropriate action to adopt Budget Amendment Ordinance 2022­05 for Fiscal Year 2022­23. (M. Erwin) 8.Take appropriate action for the ratification and acceptance of the Trophy Club Park Debris Removal/Trail Clearing Grant from the Texas Parks and Wildlife Agency. (T. Jaramillo) 9.Take appropriate action for the ratification and acceptance of the Trophy Club Park Road Repair and Pavilion Replacement Grant from the Texas Parks and Wildlife Agency (TPWD). (T. Jaramillo) 10.Take appropriate action to authorize an agreement for tree services between the Town of Trophy Club and Smith Lawn and Tree Service through an Interlocal Agreement with the City of Southlake. (T. Jaramillo) 11.Take appropriate action regarding a requisition for procurement of the replacement of three pavilions at Trophy Club Park and authorizing the mayor or her designee to execute all necessary documents. (T. Jaramillo) 12.Take appropriate action on approving the expenditure of $156,695 paid to Reynolds Asphalt for the asphalt road repair at Trophy Club Park through an Interlocal Purchasing Agreement (ILA) with the City of Grand Prairie. (M. Cox) PUBLIC HEARING(S) 13.Case SUP­22­001 (Social Oak Lounge Alcohol On­Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on­premises consumption in conjunction with a restaurant use, located at 2230 E. Highway 114 #550. (M. Cox) b. Take appropriate action regarding Ordinance 2022­06 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on­ premises consumption in conjunction with a restaurant use, located at 2230 E. Highway 114 #550. (M. Cox) 14.Case SUP­22­002 (Social Oak Lounge Alcohol Off­Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox) b. Take appropriate action regarding Ordinance 2022­07 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­ premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox) 15.Case PD 22­001 (54 & 56 Meadowbrook Lane) a. Conduct a Public Hearing regarding a request to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PD Planned Development District R­12 to allow for fencing along the front and side of the properties. (H­E. Beadle) b. Take appropriate action regarding Ordinance 2022­08 for a request to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PD Planned Development District R­12 to allow for fencing along the front and side of the properties. (H­E. Beadle) INDIVIDUAL ITEM(S) 16.Acceptance and authorization to distribute Annual Comprehensive Financial Report after final review by Town Council and Management. (M. Erwin)  17.Take appropriate action to approve Resolution 2022­04 supporting the use of ARPA Funds. (M. Erwin) 18.Review Future Agenda Items List.  (W. Carroll)  EXECUTIVE SESSION 19.Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town Council will recess into executive session: a) Section 551.087 Economic Development – Deliberate Economic Development Negotiations regarding prospective commercial projects within the Town of Trophy Club.   b) Section 551.071 Attorney­Client Privilege – Deliberate possible Interlocal Agreement with multiple governmental entities to provide services to Trophy Club Citizens.  c) Section 551.074 Personnel Matters – Annual performance evaluation of Town Secretary/Town Governance Officer per contract.  RECONVENE INTO REGULAR SESSION 20.Take appropriate action regarding executive session item(s).   ADJOURN One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on March 18, 2022 by 6:30 pm in accordance with Chapter 551, Texas Government Code. __________________________________ Leticia Vacek, TRMC/CMC/MMC Town Governance Officer If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 1 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262March 22, 2022 7:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUM ­ Mayor FleuryINVOCATION led by Lead Pastor Joel Quile of Bara Church PLEDGES led by Mayor Pro Tem LamontPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter. The Councilis not permitted to discuss or take action on any presentations made. Presentationsare limited to matters over which the Council has authority. Speakers have up to four(4) minutes or the time limit determined by the Presiding Officer. Each speaker musthave submitted their request to speak by completing the Speaker’s Form or youmay email mayorandcouncil@trophyclub.orgANNOUNCEMENTS AND REPORTS1.Recognition of BNHS Football Team and Coaches for a Historic Football Season.(Mayor Fleury)2.Business Spotlight – Wonderland Montessori School, Laura Roark. (Mayor Fleury) 3.Parks and Recreation Board Update. (T. Jaramillo) 4.Announcement of Interim Fire Chief David Jones. (W. Carroll) CONSENT AGENDA 5.Take appropriate action to approve the Town Council Meeting Minutes of February 22, 2022. (L. Vacek) 6.Take appropriate action to adopt Ordinance 2022­04 amending the Fee Schedules of the Town of Trophy Club. (M. Erwin) 7.Take appropriate action to adopt Budget Amendment Ordinance 2022­05 for Fiscal Year 2022­23. (M. Erwin) 8.Take appropriate action for the ratification and acceptance of the Trophy Club Park Debris Removal/Trail Clearing Grant from the Texas Parks and Wildlife Agency. (T. Jaramillo) 9.Take appropriate action for the ratification and acceptance of the Trophy Club Park Road Repair and Pavilion Replacement Grant from the Texas Parks and Wildlife Agency (TPWD). (T. Jaramillo) 10.Take appropriate action to authorize an agreement for tree services between the Town of Trophy Club and Smith Lawn and Tree Service through an Interlocal Agreement with the City of Southlake. (T. Jaramillo) 11.Take appropriate action regarding a requisition for procurement of the replacement of three pavilions at Trophy Club Park and authorizing the mayor or her designee to execute all necessary documents. (T. Jaramillo) 12.Take appropriate action on approving the expenditure of $156,695 paid to Reynolds Asphalt for the asphalt road repair at Trophy Club Park through an Interlocal Purchasing Agreement (ILA) with the City of Grand Prairie. (M. Cox) PUBLIC HEARING(S) 13.Case SUP­22­001 (Social Oak Lounge Alcohol On­Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on­premises consumption in conjunction with a restaurant use, located at 2230 E. Highway 114 #550. (M. Cox) b. Take appropriate action regarding Ordinance 2022­06 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on­ premises consumption in conjunction with a restaurant use, located at 2230 E. Highway 114 #550. (M. Cox) 14.Case SUP­22­002 (Social Oak Lounge Alcohol Off­Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox) b. Take appropriate action regarding Ordinance 2022­07 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­ premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox) 15.Case PD 22­001 (54 & 56 Meadowbrook Lane) a. Conduct a Public Hearing regarding a request to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PD Planned Development District R­12 to allow for fencing along the front and side of the properties. (H­E. Beadle) b. Take appropriate action regarding Ordinance 2022­08 for a request to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PD Planned Development District R­12 to allow for fencing along the front and side of the properties. (H­E. Beadle) INDIVIDUAL ITEM(S) 16.Acceptance and authorization to distribute Annual Comprehensive Financial Report after final review by Town Council and Management. (M. Erwin)  17.Take appropriate action to approve Resolution 2022­04 supporting the use of ARPA Funds. (M. Erwin) 18.Review Future Agenda Items List.  (W. Carroll)  EXECUTIVE SESSION 19.Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town Council will recess into executive session: a) Section 551.087 Economic Development – Deliberate Economic Development Negotiations regarding prospective commercial projects within the Town of Trophy Club.   b) Section 551.071 Attorney­Client Privilege – Deliberate possible Interlocal Agreement with multiple governmental entities to provide services to Trophy Club Citizens.  c) Section 551.074 Personnel Matters – Annual performance evaluation of Town Secretary/Town Governance Officer per contract.  RECONVENE INTO REGULAR SESSION 20.Take appropriate action regarding executive session item(s).   ADJOURN One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on March 18, 2022 by 6:30 pm in accordance with Chapter 551, Texas Government Code. __________________________________ Leticia Vacek, TRMC/CMC/MMC Town Governance Officer If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 2 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262March 22, 2022 7:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUM ­ Mayor FleuryINVOCATION led by Lead Pastor Joel Quile of Bara Church PLEDGES led by Mayor Pro Tem LamontPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter. The Councilis not permitted to discuss or take action on any presentations made. Presentationsare limited to matters over which the Council has authority. Speakers have up to four(4) minutes or the time limit determined by the Presiding Officer. Each speaker musthave submitted their request to speak by completing the Speaker’s Form or youmay email mayorandcouncil@trophyclub.orgANNOUNCEMENTS AND REPORTS1.Recognition of BNHS Football Team and Coaches for a Historic Football Season.(Mayor Fleury)2.Business Spotlight – Wonderland Montessori School, Laura Roark. (Mayor Fleury)3.Parks and Recreation Board Update. (T. Jaramillo)4.Announcement of Interim Fire Chief David Jones. (W. Carroll)CONSENT AGENDA5.Take appropriate action to approve the Town Council Meeting Minutes of February 22,2022. (L. Vacek)6.Take appropriate action to adopt Ordinance 2022­04 amending the Fee Schedules ofthe Town of Trophy Club. (M. Erwin)7.Take appropriate action to adopt Budget Amendment Ordinance 2022­05 for FiscalYear 2022­23. (M. Erwin)8.Take appropriate action for the ratification and acceptance of the Trophy Club ParkDebris Removal/Trail Clearing Grant from the Texas Parks and Wildlife Agency. (T.Jaramillo)9.Take appropriate action for the ratification and acceptance of the Trophy Club ParkRoad Repair and Pavilion Replacement Grant from the Texas Parks and WildlifeAgency (TPWD). (T. Jaramillo)10.Take appropriate action to authorize an agreement for tree services between theTown of Trophy Club and Smith Lawn and Tree Service through an InterlocalAgreement with the City of Southlake. (T. Jaramillo)11.Take appropriate action regarding a requisition for procurement of the replacementof three pavilions at Trophy Club Park and authorizing the mayor or her designee toexecute all necessary documents. (T. Jaramillo)12.Take appropriate action on approving the expenditure of $156,695 paid to ReynoldsAsphalt for the asphalt road repair at Trophy Club Park through an InterlocalPurchasing Agreement (ILA) with the City of Grand Prairie. (M. Cox)PUBLIC HEARING(S)13.Case SUP­22­001 (Social Oak Lounge Alcohol On­Premises)a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for aSpecific Use Permit for alcoholic beverage sales for on­premises consumption inconjunction with a restaurant use, located at 2230 E. Highway 114 #550. (M. Cox)b. Take appropriate action regarding Ordinance 2022­06 for a request madeby Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on­premises consumption in conjunction with a restaurant use, located at 2230 E.Highway 114 #550. (M. Cox) 14.Case SUP­22­002 (Social Oak Lounge Alcohol Off­Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox) b. Take appropriate action regarding Ordinance 2022­07 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­ premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox) 15.Case PD 22­001 (54 & 56 Meadowbrook Lane) a. Conduct a Public Hearing regarding a request to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PD Planned Development District R­12 to allow for fencing along the front and side of the properties. (H­E. Beadle) b. Take appropriate action regarding Ordinance 2022­08 for a request to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PD Planned Development District R­12 to allow for fencing along the front and side of the properties. (H­E. Beadle) INDIVIDUAL ITEM(S) 16.Acceptance and authorization to distribute Annual Comprehensive Financial Report after final review by Town Council and Management. (M. Erwin)  17.Take appropriate action to approve Resolution 2022­04 supporting the use of ARPA Funds. (M. Erwin) 18.Review Future Agenda Items List.  (W. Carroll)  EXECUTIVE SESSION 19.Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town Council will recess into executive session: a) Section 551.087 Economic Development – Deliberate Economic Development Negotiations regarding prospective commercial projects within the Town of Trophy Club.   b) Section 551.071 Attorney­Client Privilege – Deliberate possible Interlocal Agreement with multiple governmental entities to provide services to Trophy Club Citizens.  c) Section 551.074 Personnel Matters – Annual performance evaluation of Town Secretary/Town Governance Officer per contract.  RECONVENE INTO REGULAR SESSION 20.Take appropriate action regarding executive session item(s).   ADJOURN One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on March 18, 2022 by 6:30 pm in accordance with Chapter 551, Texas Government Code. __________________________________ Leticia Vacek, TRMC/CMC/MMC Town Governance Officer If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 3 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262March 22, 2022 7:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUM ­ Mayor FleuryINVOCATION led by Lead Pastor Joel Quile of Bara Church PLEDGES led by Mayor Pro Tem LamontPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter. The Councilis not permitted to discuss or take action on any presentations made. Presentationsare limited to matters over which the Council has authority. Speakers have up to four(4) minutes or the time limit determined by the Presiding Officer. Each speaker musthave submitted their request to speak by completing the Speaker’s Form or youmay email mayorandcouncil@trophyclub.orgANNOUNCEMENTS AND REPORTS1.Recognition of BNHS Football Team and Coaches for a Historic Football Season.(Mayor Fleury)2.Business Spotlight – Wonderland Montessori School, Laura Roark. (Mayor Fleury)3.Parks and Recreation Board Update. (T. Jaramillo)4.Announcement of Interim Fire Chief David Jones. (W. Carroll)CONSENT AGENDA5.Take appropriate action to approve the Town Council Meeting Minutes of February 22,2022. (L. Vacek)6.Take appropriate action to adopt Ordinance 2022­04 amending the Fee Schedules ofthe Town of Trophy Club. (M. Erwin)7.Take appropriate action to adopt Budget Amendment Ordinance 2022­05 for FiscalYear 2022­23. (M. Erwin)8.Take appropriate action for the ratification and acceptance of the Trophy Club ParkDebris Removal/Trail Clearing Grant from the Texas Parks and Wildlife Agency. (T.Jaramillo)9.Take appropriate action for the ratification and acceptance of the Trophy Club ParkRoad Repair and Pavilion Replacement Grant from the Texas Parks and WildlifeAgency (TPWD). (T. Jaramillo)10.Take appropriate action to authorize an agreement for tree services between theTown of Trophy Club and Smith Lawn and Tree Service through an InterlocalAgreement with the City of Southlake. (T. Jaramillo)11.Take appropriate action regarding a requisition for procurement of the replacementof three pavilions at Trophy Club Park and authorizing the mayor or her designee toexecute all necessary documents. (T. Jaramillo)12.Take appropriate action on approving the expenditure of $156,695 paid to ReynoldsAsphalt for the asphalt road repair at Trophy Club Park through an InterlocalPurchasing Agreement (ILA) with the City of Grand Prairie. (M. Cox)PUBLIC HEARING(S)13.Case SUP­22­001 (Social Oak Lounge Alcohol On­Premises)a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for aSpecific Use Permit for alcoholic beverage sales for on­premises consumption inconjunction with a restaurant use, located at 2230 E. Highway 114 #550. (M. Cox)b. Take appropriate action regarding Ordinance 2022­06 for a request madeby Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on­premises consumption in conjunction with a restaurant use, located at 2230 E.Highway 114 #550. (M. Cox)14.Case SUP­22­002 (Social Oak Lounge Alcohol Off­Premises)a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for aSpecific Use Permit for alcoholic beverage sales for off­premises consumption to besold from Social Oak Lounge, located at 2230 E Highway 114 #550. (M. Cox)b. Take appropriate action regarding Ordinance 2022­07 for a request madeby Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off­premises consumption to be sold from Social Oak Lounge, located at 2230 EHighway 114 #550. (M. Cox)15.Case PD 22­001 (54 & 56 Meadowbrook Lane)a. Conduct a Public Hearing regarding a request to rezone approximately 1.0055acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition, Lots 1 and 2,Block A, from R­12 Single Family Residential District to a PD Planned DevelopmentDistrict R­12 to allow for fencing along the front and side of the properties. (H­E.Beadle)b. Take appropriate action regarding Ordinance 2022­08 for a request to rezoneapproximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last AcreAddition, Lots 1 and 2, Block A, from R­12 Single Family Residential District to a PDPlanned Development District R­12 to allow for fencing along the front and side of theproperties. (H­E. Beadle)INDIVIDUAL ITEM(S)16.Acceptance and authorization to distribute Annual Comprehensive Financial Reportafter final review by Town Council and Management. (M. Erwin) 17.Take appropriate action to approve Resolution 2022­04 supporting the use of ARPAFunds. (M. Erwin)18.Review Future Agenda Items List.  (W. Carroll) EXECUTIVE SESSION19.Pursuant to the following designated sections of the Texas Government Code,Annotated, Chapter 551 (Texas Open Meetings Act), the Town Council will recessinto executive session:a) Section 551.087 Economic Development – Deliberate Economic DevelopmentNegotiations regarding prospective commercial projects within the Town of TrophyClub.  b) Section 551.071 Attorney­Client Privilege – Deliberate possible InterlocalAgreement with multiple governmental entities to provide services to Trophy ClubCitizens.  c) Section 551.074 Personnel Matters – Annual performance evaluation of Town Secretary/Town Governance Officer per contract.  RECONVENE INTO REGULAR SESSION 20.Take appropriate action regarding executive session item(s).   ADJOURN One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on March 18, 2022 by 6:30 pm in accordance with Chapter 551, Texas Government Code. __________________________________ Leticia Vacek, TRMC/CMC/MMC Town Governance Officer If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 4 1 TOWN OF TROPHY CLUB TOWN COUNCIL REGULAR SESSION MINUTES Tuesday, February 22, 2022 The Trophy Club Town Council met in a Regular Meeting on Tuesday, February 22, 2022. The meeting was held at 7pm at the Town Hall Council Chamber, 1 Trophy Wood Drive. TOWN COUNCIL MEMBERS PRESENT: Alicia L. Fleury Mayor Greg Lamont Mayor Pro Tem, Place 1 Jeff Beach Council Member, Place 2 Dennis Sheridan Council Member, Place 3 Karl Monger Council Member, Place 4 LuAnne Oldham Council Member, Place 5 Philip Shoffner Council Member, Place 6 STAFF PRESENT: Wade Carroll Town Manager Leticia Vacek Town Governance Officer/Town Secretary/RMO David Dodd Town Attorney Patrick Arata Police Chief Jack Taylor Fire Chief Tony Jaramillo Director of Parks and Recreation Matt Cox Director of Community Development Jill Lind Communications & Marketing Manager Mike Erwin Finance Manager CALL TO ORDER AND ANNOUNCE A QUORUM Mayor Fleury called the meeting to order at 7pm noting a quorum present with all Council Members present. INVOCATION Pastor Barry Clingan of The Church at Trophy Lakes delivered the invocation. He prayed for the current world crisis and anxiety asking everyone to stop and center our thoughts on our Father. He also prayed for those in authority at the national level and the very important decisions they will make in these critical days. He added prayers for all individuals that serve our town starting with Mayor Fleury. He asked our Father to continue to provide her wisdom and the ability to manage her very busy schedule. He also prayed for our Town Council that serves us and that their time spent serving be multiplied. PLEDGES Council Member Shoffner led the pledges to the United States Flag and the Texas Flag. PUBLIC COMMENTS Mayor Fleury asked if anyone had registered to speak. Town Governance Officer Vacek confirmed that Teryl Flynn and Wendie Bailey had jointly registered. Mayor Fleury called upon Mrs. Flynn and Mrs. Bailey. Mrs. Flynn, 417 Ramsey Trail, Trophy Club and Wendie Bailey, 201 Durango Drive addressed the Council. Mrs. Flynn stated that her husband, Steve Flynn is running for Town Council Place 6 and read the following statement for him. He apologized for not being able to attend in person as he is currently in class. He stated that Mrs. Bailey and he met and have agreed to do the very best to keep the social commentary at a professional level during the Town’s General Election. He stated that is their commitment to the Mayor and Council. Lastly, he stated that the Council and Residents of Trophy Club deserve nothing less as Residents deserve to know where each candidate stands on issues that are important to them. Mrs. Bailey stated that she supported everything that was stated and read. She also noted that she was looking forward to getting out and letting people know where she stands on certain issues and would not be involved in any negative politics. She closed by stating that she and Steve both agreed to make this Council Race a positive experience for all voters. Mayor Fleury thanked Mrs. Flynn and Mrs. Bailey for their positivity. 5 2 ANNOUNCEMENTS AND REPORTS 1. Business Spotlight – Big Chill Ice Cream, Christy Swanson. (Mayor Fleury) Mrs. Swanson stated that they brought various samples of ice cream for the Council. She added that she and her husband are managing Big Chill Ice Cream again and have made some new changes. She announced that they are serving Hershey’s Ice Cream noting that Blue Bell is to Southerners as Hershey’s Ice Cream is to the Northwest and Northeast. She mentioned they are doing Birthday Parties and can close to the public as well as organizing Fundraisers for any school teams. Their hours are Sunday through Thursdays from 2pm to 8pm and Fridays and Saturdays from 1pm to 9pm. Mayor Fleury thanked Mrs. Swanson for bringing ice cream and made mentioned of their fabulous juices and chia pudding that her son enjoyed from the samplings provided during the last meeting. Mrs. Swanson proudly announced their new Key Lime Pie Pudding flavor. 2. May 7, 2022 Election Update. (L. Vacek) Mrs. Vacek highlighted key information relating to the Town’s May 7, 2022 General/Specials Elections. She clarified that the deadline to register to vote in the May 7th Town Election is April 7, 2022 by 5pm at the respective County (Denton or Tarrant). She reported that there are new Trophy Club Precinct Numbers for Denton County Voters of Pct. 4210 with 5,362 Registered Voters and Precinct 4211 with 4,508 Registered Voters while there are 506 Tarrant County registered voters residing in Trophy Club. Lastly, she mentioned that the Primary Election is ongoing and early voting continues through February 25, 2022 from 7am to 7pm and on Primary Election day of March 1. 3. Introduction of Trophy Club Parks & Recreation Volunteer Association (TCPRVA) – Stacey Bauer. (T. Jaramillo) Mr. Jaramillo reported that a new volunteer organization (TCPRVA) has been created to assist the Parks and Recreation Department. He introduced Stacey Bauer a 10-year resident of Trophy Club who is very involved in the NISD-PTA and who has taken the lead in creating the TCPRVA. Ms. Bauer reported that everything is up and running on their TCPRVA Website through the Town’s Parks and Recreation page. In addition, they have a Facebook Page in order to volunteer as they already have a Board of Directors in place. She added that they will begin with Easter and they have mimicked their partner, TCEVA Non-profit, in order to support and provide the extra needed assistance to the Parks & Recreation Department. She added in speaking with the TC Women’s Club, there are some grant opportunities available and they will be fund-raising through the Women’s Club, and Trophy Club Web page. Lastly, she added they looked forward to working with the Parks and Recreation Department. Mayor Fleury thanked and welcomed Ms. Bauer for her work implementing this project as the programs offered takes numerous volunteers. Mayor Fleury gave a Shout-Out to the Byron Nelson High School Wrestling Team who came in 1st in their District Competition and then 8 Athletes made it to Regionals who went on to State and had 3 Medalists. She explained the reason for her hair dyed blonde was in support of her Son, Justin and for their team spirit as they competed at State. She congratulated the BNHS Boys and Girls Wrestling Teams for their awesome season. PROCLAMATION 4. Issuance of Proclamation 2022-03 proclaiming March 8, 2022 as Trophy Club Rotary Day. (Mayor Fleury) Mayor Fleury read and moved to approve Proclamation 2022-03. Council Member Monger seconded the motion. The motion carried unanimously by all. Council Member Monger stated that when he moved to Trophy Club 9 years ago; he joined the Rotary Club and said those friendships continue today. He added that joining Rotary is a great way to be connected with the community as several members helped him with the start of the Metroport Veteran’s Association. Mayor Fleury added that her first experience was speaking to Karl’s group, which led her to become a Charter Member of the Trophy Club Rotary Club. She also spoke to the accomplishments of the Trophy Club Rotary in just 5 years and the impact they have had within Trophy Club and the World. She encouraged everyone to visit our Trophy Club Rotary Club noting they meet every Friday at 8am at the Trophy Club Country Club. Mayor Fleury presented the proclamation and thanked the Rotary Club Officers that were present being President Jack Ormond, President-Elect Chasidy Murphy, Treasurer Dana Kizer, and Community Service Officer Darin Davis. President-Elect Murphy thanked Mayor Fleury and the Council for the recognition and reiterated what had been stated by joining Rotary. She stated she too did not know anyone and Rotary was definitely instrumental in getting herself involved in the Community from the onset. She stated that Rotary has provided enjoyment by serving others and that the true mission of Rotary is “Service above Self”. 6 3 CONSENT AGENDA 5. Approval of the Town Council Regular Meeting of February 8, 2022 and Town Council Joint Meeting with EDC-4B of February 9, 2022. (L. Vacek) 6. Acceptance of the First Quarterly Investment Report for FY22. (M. Erwin) Mayor Pro Tem Lamont moved to approve Consent Agenda Items 5 and 6. Council Member Shoffner seconded the motion. The motion carried with all Council Members present and voting. INDIVIDUAL ITEMS 7. Take appropriate action regarding authority to sell beer and wine by Shannon Brewery and Two Brothers Winery during the Taste of Trophy Club Event scheduled April 30, 2022 at Independence Park East pursuant to the Town’s Code of Ordinances Section 14.02.252 (J) (1). (T. Jaramillo) Mr. Jaramillo presented the item for the consideration of the sale of beer and wine at Independence Park during the first annual Taste of Trophy Club event scheduled on April 30, 2022. He stated that staff is excited as they prepare for the event that will start at 6pm through 10pm. He said the event will provide the local restaurants to showcase their specialty menu items. He added that the event will be an adult centered event but will have some activities for children. He showed a map noting all logistics have yet to be completed. He denoted the orange fencing to encompass the event and noted a shuttle service will be selected to provide transportation services. He noted staff has reached out to all the restaurants and denoted the partners to date of The Trophy Table, Popcorn Central, Juice & Roots, HG Supply, Vinny’s Italian, and Wing Stop. He noted the request to sell beer and wine. Shannon Carter of Shannon Brewery in Keller is a Trophy Club Resident and Two Brothers Winery of Keller is partnering with Mr. Carter to sell wine. He thanked the Parks and Recreation Team and Jill Lind for assisting with the PowerPoint presentation. Council Member Shoffner asked if an ordinance could be drafted and placed on a future agenda to grant permission for the sale of beer and wine within the Parks. Mayor Pro Tem Lamont noted the children’s activities on the map and asked that we not discourage families from attending. Mayor Pro Tem Lamont moved to approve the sale of beer and wine by Shannon Brewery and Two Brothers Winery during the Taste of Trophy Club Event scheduled for April 30, 2022 at Independence Park East. Council Member Shoffner seconded the motion. The motion carried unanimously with all Council Members present and voting. 8. Future Agenda Items Lists. (W. Carroll) Mr. Carroll referenced the list noted the first 3 items are moving along. He noted that Item 4 was added last relating to bringing back Ordinances for review. If placed under the Consent Agenda; his concern is the vote of the consent agenda creating a situation where the adopted Ordinance would be voted on a second time. He stated that he wanted to avoid that situation. Council Member Shoffner noted that he was not at the last meeting where Mayor Pro Tem Lamont added said item but did not feel the Council changed anything. He explained that there were times where the Ordinances were not accurate. After a brief discussion, it was the consensus of the Council to remove Item 4 from the list. He stated that in the past Council requested to see ordinances but not coming back for another vote. Mayor Pro Tem Lamont noted he did not have a problem tabling an item although many times, staff is working within timeline. After a brief discussion, it was the consensus of the Council that the Town Manager provide the Council the final executed modified ordinance(s). Mr. Carroll confirmed that he would provide same to the Council after the Mayor has signed the ordinance(s) for Council to review. Council Member Shoffner moved that the Ordinance relating to the Sale of Alcohol at Trophy Club Parks be added to the list. As there was a consensus of all, said item will be placed on the list. Mayor Fleury reminded everyone that it is National Margarita Day and our local restaurants have great ones just do not drink and drive! ADJOURNMENT Mayor Fleury adjourned the meeting at 7:53 pm. 7 4 _ Alicia L. Fleury, Mayor Attest: _ Leticia Vacek, TRMC/CMC/MMC Town Governance Officer 8 To: Mayor and Town Council From: Wade Carroll, Town Manager CC: Leticia Vacek, Town Secretary Mike Erwin, Finance Manager Re: Review Ordinance 2022-04 Amending various Fee Schedules for the Town of Trophy Club Town Council Meeting, March 22, 2022 Agenda Item: Take appropriate action regarding Ordinance 2022-04 amending various Fee Schedules for the Town of Trophy Club. (W. Carroll) Strategic Link: Administrative & Financial Services: Exercise fiscal discipline in all Town Operations. Background and Explanation: Staff is seeking direction and approval to amend the Town’s Code of Ordinances, specifically Appendix A, Fee Schedule. All departments completed a review of fees charged by the Town of Trophy Club within approved Town Ordinances. The changes being proposed to the fee schedule are changes that align with neighboring cities and allow for cost recovery. Financial Considerations: Annual adjustments to be implemented. Legal Review: Not applicable Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends that the fee schedule be reviewed for necessary adjustments annually and that proposed changes to Appendix A, Fee Schedule of the Town of Trophy Club Code of Ordinances be approved. Attachments: Ordinance 2022-04 9 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas this 22nd day of March 2022. Alicia L. Fleury, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas 10 Page 3 of 8 ORD 2022-__ 11 ORD 2022-04 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2022-04 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING SECTION A1.003 COMMUNITY DEVELOPMENT DEPARTMENT AND SECTION A1.012 PARKS AND RECREATION OF THE TOWN OF TROPHY CLUB CODE OF ORDINANCES TO UPDATE FEES; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING FOR AMENDMENTS; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PUBLICATION CLAUSE; PROVIDING A PENALTY NOT TO EXCEED TWO HUNDRED DOLLARS ($200.00) FOR EACH VIOLATION; PROVIDING AN ENGROSSMENT AND ENROLLMENT CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, fees imposed by the Town are adopted via Ordinance and are codified in Appendix A, Fee Schedule, of the Town of Trophy Club Code of Ordinances; and WHEREAS, having reviewed the proposed cost adjustments, the Town Council finds that the proposed fee adjustments are reasonable and necessary to pay the administrative costs associated with providing services to the public; and WHEREAS, the Town Council hereby finds that amending Section A1.003 Community Development Department, A1.011 Police Department, and Section A1.012 Parks and Recreation and Special Events of Article A1.000, General Provisions, of Appendix A, Fee Schedule, of the Town of Trophy Club Code of Ordinances as further specified herein serves the best interests of the health, safety and welfare of the citizens of the Town. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENTS 2.01 Subsection (j) and (k), of Section A1.003, Community Development Department, and subsection (e) and (f) of Article A1.012, Parks and Recreation and Special Events, General Provisions, of Appendix A, Fee Schedule, of the Town of Trophy Club Code of Ordinances are hereby amended as follows and all other subsections not expressly mentioned hereafter shall remain the same: 12 ORD 2022-04 APPENDIX A FEE SCHEDULE ARTICLE A1.000 GENERAL PROVISIONS … Sec. A1.003 Community Development Department … (j) Grading Permit: (7) NEW – Flatwork/concrete: $50.00 (k) Health Permits (8)NEW – Commercial Swimming Pools (annually): $150.00 (9)NEW – Reinspection fee (per health violation occurrence): $100.00 APPENDIX A FEE SCHEDULE ARTICLE A1.000 GENERAL PROVISIONS Sec. A1.012 Parks and Recreation and Special Events (e)Trophy Club Park.Current New OHV Decal $16 $20 10 Punch Boat Pass (Resident) 10 Punch Boat Pass (Non-resident) $40 $80 (f) Community pool fees Pool Rental Rates Residential rental rate Current NEW Large pool rental $300 $375 Spray Pad (weekday) $225 $350 Spray Pad (weekend) $300 $375 Community Pool Aerobics Current NEW 5 Punch Class (Resident)$40 5 Punch Class (Non-resident)$65 13 ORD 2022-04 Community Pool Swim Lessons Parent & Child & Preschool per session Current NEW Resident $55 $60 Non-resident $60 $70 Learn to Swim Resident $60 $65 Non-resident $65 $75 (h) Summer Camp Resident $150 $175 Non-resident $170 $200 SECTION 3. SAVINGS AND REPEALER This Ordinance shall be cumulative of all other ordinances of the Town affecting setting Fee Schedules and shall not repeal any of the provisions of such ordinances except in those instances where provisions of those ordinances are in direct conflict with the provisions of this Ordinance; whether such ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. PUBLICATION14 ORD 2022-04 The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption, Penalty Clause, and Effective Date Clause of this Ordinance as required by Section 52.013 of the Texas Local Government Code. SECTION 6. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision of this Ordinance shall be fined, upon conviction, not less than One Dollar ($1.00) nor more than Two Hundred Dollars ($200.00). SECTION 7. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with the Town Charter. SECTION 8. EFFECTIVE DATE This Ordinance shall become effective from and after its date of passage and publication as required by law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas this 22nd day of March 2022. Alicia L. Fleury, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, Town Secretary Town of Trophy Club, Texas 15 ORD 2022-04 APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas 16 Page 1 of 3 To: Mayor and Town Council From: Wade Carroll, Town Manager CC: Leticia Vacek, Town Secretary Mike Erwin, Finance Manager Re: Fiscal Year 2021-2022 Budget Amendment #1 Town Council Meeting, March 22, 2022 Agenda Item: Consider and take appropriate action regarding an Ordinance amending the Fiscal Year 2021- 2022(FY22) Budget of the Town of Trophy Club, Texas Budget Amendment No. 1; providing for an amendment to appropriate funds related to changes in various departments; and providing an effective date (W. Carroll). Strategic Link: Administrative & Financial Services – Exercise fiscal discipline in all Town operations. Background and Explanation: Section #1 – Expenditures that impact the General Fund include COVID pay for employees; adjusting full and part time employees to meet the needs of the organization; service/supplies increase for vehicles, fuel, and building maintenance in public safety; and increase three positions from Manager to Director. COVID pay includes $2,500 for Public Safety, Parks and Community Development employees, the employees whose jobs required them to be out in the public at all times. Employees in the office and with hybrid (office & remote) work patterns are receiving $1,500. Funding for this expenditure is grant revenues from the ARPA funds. Also using ARPA funds to reimburse overtime in Police due to COVID related absences. Personnel adjustments include removing two full time positions from the Town Manager Office, the Assistant to the Town Manager position and the Records Analyst position and adding a part time Assistant to the Town Governance Officer. 17 Page 2 of 3 The Community Development department added an Assistant to the Director position and the Communication department added a part time Communication/Marketing Support Specialist position. The Human Resource Department is removing its HR Generalist position. The final personnel adjustment is increasing three Managers to Director, the Finance Manager, Human Resources Manager and the Communications and Marketing Manager. Section 2 – The CCPD Fund is increasing the expenditures by $42,000 for the purchase of body cameras and is also increasing the Grant Revenue line item by $21,525 for grant funds received toward this purchase. Section 3 – The HOT Fund expenditures will increase $15,000 for additional children’s activities for the 4th of July event. Section 4 – Decrease the Bond Proceeds revenue line item to zero. These proceeds were received in September of 2021 and at auditor direction were recorded in FY21. Section 5 – Increase independent labor and capital expense in the Trophy Club Park Fund and recognize corresponding grant revenues. The grant for the brush removal is $65,000 and is to cover 100% of the expenditures. The grant for the road and pavilion repair is $160,000 and the Town is required to match 20% or $40,000. Use of General Fund’s fund balance – transfer $1,000,000 of General Fund’s fund balance to the Capital Equipment Replacement Fund, $900,000 and $100,000 to the Information Services Capital Equipment Replacement Fund. Financial Considerations: Budget Amendment #1 changes the FY22 budget by increasing the General Fund expenditures $209,930 and the General Fund revenues by $198,649. The amendment also adjusts the CCPD, HOT and Trophy Club Park budgets as detailed on Attachment #1. The final adjustment from Budget Amendment #1 is an increase in transfer out of the General Fund’s fund balance to Equipment Replacement Funds. Legal Review: Not applicable Board/Commission/ or Committee Recommendation: Not Applicable 18 Page 3 of 3 Staff Recommendation: Staff recommends approval of Ordinance No. 2022-05. Attachments: Ordinance No. 2022-05 Budget Amendment # 1 Town Council Approval: Mayor Alicia L. Fleury or designee 19 ORD. 2022-05 TOWN OF TROPHY CLUB ORDINANCE NO. 2022-05 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING THE FY 2021-2022 BUDGET OF THE TOWN OF TROPHY CLUB, TEXAS, BUDGET AMENDMENT NO. 1; PROVIDING FOR AN AMENDMENT TO APPROPRIATE FUNDS FOR EXPENDITURES ASSOCIATED WITH OPERATIONS AND CAPITAL; PERSONNEL CHANGES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas Fiscal Year 2021-2022 Budget was adopted within the time and in the manner required by State Law; and WHEREAS, in that Budget, the Town Council did not appropriate funds for expenditures associated with use of ARPA Funds; current fiscal year addition and reclassification of expenditures; and WHEREAS, the Town Council of the Town of Trophy Club, Texas further finds that the amendment, as set forth in Exhibit “A”, will serve the public interest and is necessary to support Town operations; and WHEREAS, the Town Council of the Town of Trophy Club, Texas finds and determines that the change in the Budget for the stated municipal purpose serves best interests of the taxpayers, is necessary and warrants action at this time. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT The Town of Trophy Club, Texas, Fiscal Year 2021-2022 Budget is hereby amended to fund the line items as stated in Exhibit “A”, a copy of which is attached hereto and incorporated herein. This Amendment No. 1 (Exhibit “A”) to the Original Budget of the Town of Trophy Club, Texas, for the Fiscal Year 2021-2022 shall be attached to and made part of the Original Budget by the Town Secretary and shall be filed in accordance with State Law. This Ordinance is hereby adopted and shall constitute the first amendment that has occurred since the October 1, 2021, effective date of the Town’s Fiscal Year 2021-2022 Budget. 20 ORD 2022-__ Page 2 of 6 SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other Ordinances of the Town affecting the Fiscal Year 2021-2022 Budget of the Town and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in the Ordinance records of the Town and to properly record this Ordinance in accordance with the Town Charter. SECTION 6. EFFECTIVE DATE This Ordinance shall take effect from and after its date of passage in accordance with law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 22nd day of March 2022. Alicia L. Fleury, Mayor Town of Trophy Club, Texas 21 ORD 2022-__ Page 3 of 6 [SEAL] ATTEST: Leticia Vacek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas 22 ORD 2022-__ Page 4 of 6 Exhibit “A” Town of Trophy Club Budget Amendment No. 1 23 ORD 2022-__ Page 5 of 6 Department Line Item Description Budget Total Recommended Change Amended Budget Section 1 TMO COVID Pay 5,429$ Remove Assistant to Town Manager (82,827)$ Remove Records Analyst Position (44,618)$ Add CGO - Part -time 18,571$ Total Personnel Costs 685,833$ (103,445)$ 582,388$ Police COVID Pay 59,722$ COVID Related Overtim 9,832$ Total Personnel Costs 2,829,072$ 69,553$ 2,898,625$ Vehicle Maintenance 14,000$ Fuel 30,000$ Total Service/Supplies 221,158$ 44,000$ 265,158$ FIRE/EMS COVID Pay 42,831$ Total Personnel Costs 2,336,423$ 42,831$ 2,379,254$ Building Maintenance 21,061$ Total Service/Supplies (Fire Only)166,424$ 21,061$ 187,485$ -$ Streets -$ COVID Pay 9,049$ Total Personnel Costs 54,159$ 9,049$ 63,208$ -$ Parks -$ COVID Pay 48,863$ Total Personnel Costs 842,536$ 48,863$ 891,399$ -$ Recreation -$ COVID Pay 3,620$ Total Personnel Costs 527,410$ 3,620$ 531,030$ -$ Community Development -$ COVID Pay 8,446$ Add Asst to Director position 67,603$ Total Personnel Costs 271,912$ 76,049$ 347,961$ -$ Finance COVID Pay 7,239$ Increased Salary for New Hire Position 12,175$ Increase from Manager to Director 3,122$ Total Personnel Costs 418,438$ 22,536$ 440,974$ Human Resource COVID Pay 1,810$ Increase from Manager to Director 7,617$ Remove HR Generalist Position (60,325)$ Total Personnel Costs 263,783$ (50,898)$ 212,885$ Communications COVID Pay 1,810$ Add Communications Part-time 18,571$ Increase from Manager to Director 6,331$ Total Personnel Costs 115,703$ 26,712$ 142,415$ -$ Total Expenditure Increase 209,930$ Grant Revenues 85,000$ 198,649$ 283,649$ Net Impact Revenues over/under Expenditures 313,382$ (11,282)$ 302,100$ FY22 BUDGET AMENDMENT #1: 24 ORD 2022-__ Page 6 of 6 Department Line Item Description Budget Total Recommended Change Amended Budget Section 2 Police CCPD Small Equipment Body Camera Grant 54,500$ 42,000$ 96,500$ Grant Revenue -$ 21,525$ 21,525$ Section 3 HOT Fund 4th of July Event 125,000$ 15,000$ 140,000$ Section 4 CAPITAL Capital Projects Fund Bond Proceeds Hit at the end of FY21, recorded in FY21 per Auditors direction 4,500,000$ (4,500,000)$ -$ Section 5 Trophy Club Park Fund Brush Removal Independent Labor 30,000$ 65,000$ 95,000$ Road Repair and Pavilion Repair Capital Expense 97,500$ 160,000$ 257,500$ Grant Revenue -$ 65,000$ 65,000$ Grant Revenue 65,000$ 160,000$ 225,000$ Use of GF Fund Balance (927,040)$ (1,000,000)$ (1,927,040)$ Capital Equipment Replacement Fund 827,040$ 900,000$ 1,727,040$ IT Equipment Replacement Fund 100,000$ 100,000$ 200,000$ FY22 BUDGET AMENDMENT #1 (cont): 25 Page 1 of 2 To: Mayor and Town Council From: Tony Jaramillo, Director of Parks and Recreation CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Trophy Club Park Debris Removal grant acceptance Town Council Meeting, March 22, 2022 Agenda Item: Consider and take action regarding the ratification for the acceptance of the Trophy Club Park Debris Removal/Trail Clearing grant through Texas Parks and Wildlife (T. Jaramillo). Strategic Link: Infrastructure and Development: Maintain and improve all Town Infrastructure. Background and Explanation: Staff is requesting ratification vote to authorization the previous acceptance of an awarded grant from Texas Parks and Wildlife Project OH – 19020 for the removal of debris throughout various trails in Trophy Club Park. The Town was awarded a grant from Texas Parks and Wildlife (TPWD) by meeting specific criteria. The grant was awarded to the Town in August of 2021; the approved amount is for $65, 000 in which 100 percent is covered by Texas Parks and Wildlife. Staff will hire Smith Lawn and Tree if the Interlocal Purchasing Agreement with the City of Southlake is approved to remove debris from various trails in Trophy Club Park, especially, areas affected by driftwood that negatively impact the aesthetics of the park and the safety of the Motocross Track and Trails. Financial Considerations: This grant will increase the grant revenues and the operating expenditures in the Trophy Club Park Fund by $65,000. Grant revenues are planned to cover the expenditures. This action is reflected in Budget Amendment #1. 26 Page 2 of 2 Legal Review: Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends approval of the Texas Parks and Wildlife grant project OH – 19020 in the amount of $65,000. Attachments:  State Grant Agreement  Debris Removal Project budget Detail 27 28 29 30 31 32 33 Project Budget Details City of Trophy Club REC-2020-Trophy Club-00141 Project Cost Summary and Budget Narrative Itemized Budget Be sure to provide an itemized list of all activities to be undertaken and the cost of each activity. Provide as much detail as possible (consider materials: surfacing, lumber, stones, etc; volunteer or paid labor, services contracts, land acquisition, equipment/tool rental and value of in-house equipment or labor). Sponsor's administrative costs cannot be included. Clearly identify those items that you are requesting federal funds to pay for and items that you are paying for with matching funds. Applications that contain ineligible budget items may not be considered for funding by the Recreational Trails Advisory Board . For TPWD use only Unit Description # of Units Cost Per Unit Sponsor Cost (20%) TPWD Cost (80%) Total Cost Approved Federal Share Approved Total Cost SERVICE DELIVERY COSTS Labor $0 $0 $0 $0 $0 $0 Materials/Supplies (Concrete, rebar, lumber, etc.) $0 $65,000.00 $65,000.00 $65,000.00 $65,000.00 Debris removal project trail clearing 1 $65,000.00 $65,000.00 $65,000.00 $65,000.00 $65,000.00 Environmental Surveys $0 $0 $0 $0 $0 Engineering and Professional Services $0 $0 $0 $0 $0 Equipment Rental/Use $0 $0 $0 $0 $0 Miscellaneous $0 $0 $0 $0 $0 TOTAL PROJECT COST $0 $65,000.00 $65,000.00 $65,000.00 $65,000.00 NOTE: All fields below will calculate after you have saved this page ROUNDED TOTAL (Automatically rounded up to the nearest hundred dollars) $0 $65,000 $65,000 $65,000 $65,000 REQUESTED PERCENTAGE (%)0.00 %100.00 % Page 1 of 302/25/2022 34 Project Budget Details City of Trophy Club REC-2020-Trophy Club-00141 TPWD APPROVED PERCENTAGE (%)0.00 %100.00 % Requested - Rounded Total Itemized Project Costs - (both federal and matching funds) $65,000 Requested - Rounded Total Federal Funds Requested - (80% or less of Total Project Cost) $65,000 Requested - Rounded Local Match Amount - (20% or more of total Project Cost) $0 Approved - Rounded Total Itemized Project Costs - (both federal and matching funds): $65,000.00 Approved - Rounded Total Federal Funds Requested - (80% or less of Total Project Cost): $65,000.00 Approved - Rounded Local Match Amount - (20% or more of Total Project Cost): $0 Proposed Method of Financing Sponsor's Share Please describe the source of funds, donations, or in-kind contributions that will make up the Sponsor's match (at least 20%). You may include government appropriations; private donations of land, easement, cash, labor, materials and equipment; or in-house labor, equipment and materials: How will the development of the project be constructed/installed?  [ ] Contract  [ ] Force Account  [ ] In Kind  [ ] Other Government Assistance  [ ] Qualified Youth Corps  [ ] Volunteers In-Kind/Volunteer Match Describe (1000 characters or less) the Methodology of financial value obtained for In-Kind/Volunteer Project Scope (if available - from Grant Agreement Details form ) Page 2 of 302/25/2022 35 Project Budget Details City of Trophy Club REC-2020-Trophy Club-00141 Debris removal from weather damaged trail system - $65,000.00 (This item is not available to use for matching funds for your Recreational Trails Program grant .) Project Location: 6885 Trophy Park Drive, Trophy Club, TX 76262 in Denton County. Latitude: 33.016113 Longitude: -97.17797 TPWD Notes: For TPWD use only Page 3 of 302/25/2022 36 Page 1 of 2 To: Mayor and Town Council From: Tony Jaramillo, Director of Parks and Recreation CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Road repair at Trophy Club Park Town Council Meeting, March 22, 2022 Agenda Item: Consider and take action regarding the ratification for the acceptance of the Trophy Club Park Road Repair and pavilion replacement grant through Texas Parks and Wildlife (TPWD) (T. Jaramillo). Strategic Link: Infrastructure and Development: Maintain and improve all Town Infrastructure. Background and Explanation: Staff is requesting the ratification for the acceptance of a Texas Parks and Wildlife Grant that was applied for in 2020 after receiving permission to pursue the grant from Council. The staff received word from Texas Parks and Wildlife that we had been awarded the grant in August of 2021 however we were unable to accept until this fiscal year due to problems with the State’s financial system. TPWD notified staff in January 2022 that the grant has been cleared for acceptance. The grant agreement includes repairs to the road near the entrance of the park and the replacement of various pavilions. The amount awarded for this project is $160,000 and Trophy Club Park’s funding responsibility is $40,000, twenty (20) percent of the total amount of $200,000 Two projects will be executed with the awarded amount, which will be to repair the road near the entrance of the park and replace three pavilions at picnic tables 10, 11 and 12 located at the north end of the park. Financial Considerations: The TPWD grant will provide up to $160,000 in funds for the road and pavilion projects. The Town is required to meet a 20% match, $40,000. Budget Amendment #1 increases the 37 Page 2 of 2 expenditure and grant revenue budget for the Trophy Club Park Fund by $160,000. The Town’s match of $40,000 is included in the current approved budget. Legal Review: The original grant application was reviewed by the Town Attorney in 2020. Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends acceptance of the TPWD Grant in the amount of $160,000. Attachments:  Grant Documents 38 Project Budget Details City of Trophy Club REC-2020-Trophy Club-00197 Project Cost Summary and Budget Narrative Itemized Budget Be sure to provide an itemized list of all activities to be undertaken and the cost of each activity. Provide as much detail as possible (consider materials: surfacing, lumber, stones, etc; volunteer or paid labor, services contracts, land acquisition, equipment/tool rental and value of in-house equipment or labor). Sponsor's administrative costs cannot be included. Clearly identify those items that you are requesting federal funds to pay for and items that you are paying for with matching funds. Applications that contain ineligible budget items may not be considered for funding by the Recreational Trails Advisory Board . For TPWD use only Unit Description # of Units Cost Per Unit Sponsor Cost (20%) TPWD Cost (80%) Total Cost Approved Federal Share Approved Total Cost SERVICE DELIVERY COSTS Labor $0 $0 $0 $0 $0 Materials/Supplies (Concrete, rebar, lumber, etc.) $36,000.00 $160,000.00 $196,000.00 $160,000.00 $196,000.00 Construction (Labor)import 1 $18,000.00 $18,000.00 $0 $18,000.00 $0 $18,000.00 Construction of entrance road and pavilion import 1 $178,000.00 $18,000.00 $160,000.00 $178,000.00 $160,000.00 $178,000.00 Environmental Surveys $0 $0 $0 $0 $0 Engineering and Professional Services $0 $0 $0 $0 $0 Equipment Rental/Use $4,000.00 $0 $4,000.00 $0 $4,000.00 Use of City Owned Equipment import 1 $4,000.00 $4,000.00 $0 $4,000.00 $0 $4,000.00 Miscellaneous $0 $0 $0 $0 $0 TOTAL PROJECT COST $40,000.00 $160,000.00 $200,000.00 $160,000.00 $200,000.00 NOTE: All fields below will calculate after you have saved this page ROUNDED TOTAL (Automatically rounded up to the nearest $40,000 $160,000 $200,000 $160,000 $200,000 Page 1 of 302/17/2022 39 Project Budget Details City of Trophy Club REC-2020-Trophy Club-00197 hundred dollars) REQUESTED PERCENTAGE (%)20.00 %80.00 % TPWD APPROVED PERCENTAGE (%)20.00 %80.00 % Requested - Rounded Total Itemized Project Costs - (both federal and matching funds) $200,000 Requested - Rounded Total Federal Funds Requested - (80% or less of Total Project Cost) $160,000 Requested - Rounded Local Match Amount - (20% or more of total Project Cost) $40,000 Approved - Rounded Total Itemized Project Costs - (both federal and matching funds): $200,000.00 Approved - Rounded Total Federal Funds Requested - (80% or less of Total Project Cost): $160,000.00 Approved - Rounded Local Match Amount - (20% or more of Total Project Cost): $40,000.00 Proposed Method of Financing Sponsor's Share Please describe the source of funds, donations, or in-kind contributions that will make up the Sponsor's match (at least 20%). You may include government appropriations; private donations of land, easement, cash, labor, materials and equipment; or in-house labor, equipment and materials: How will the development of the project be constructed/installed?  [ ] Contract  [ ] Force Account  [ ] In Kind  [ ] Other Government Assistance  [ ] Qualified Youth Corps  [ ] Volunteers In-Kind/Volunteer Match Describe (1000 characters or less) the Methodology of financial value obtained for In-Kind/Volunteer Page 2 of 302/17/2022 40 Project Budget Details City of Trophy Club REC-2020-Trophy Club-00197 Project Scope (if available - from Grant Agreement Details form ) Trophy Club Park: Renovation of trailhead entrance road with the replacement of trailhead pavilions, resource surveys, and engineering. Project Location: 6885 Trophy Park Drive, Trophy Club, TX 76262 in Denton County. Latitude: 33.016113 Longitude: -97.17797 TPWD Notes: For TPWD use only Page 3 of 302/17/2022 41 Page 1 of 2 To: Mayor and Town Council From: Tony Jaramillo, Director of Parks and Recreation CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Tree Services through an Interlocal Agreement Date: March 22, 2022 Agenda Item: Consider and take action on authorizing of an agreement for tree services between the Town of Trophy Club and Smith Lawn and Tree Service through an Interlocal Agreement with the City of Southlake (T. Jaramillo). Strategic Link:  Maintain Town assets, services, and codes of ordinances that preserve the natural beauty of the Town.  Collaborate effectively with other governmental entities Background and Explanation: The City of Southlake maintains a contract with Smith Lawn and Trees for tree services through an Interlocal Agreement with the contractor. The agreement was renewed February 1, 2022, between both parties and shall remain effective for twelve (12) months from date of renewal and is eligible for up to two (2) more one (1) year annual renewals. The contract was originally awarded on February 18, 2020, and can potentially last until February 18, 2024, should the City of Southlake decide to renew for the next two (2) years. The Parks and Recreation Department and the Community Development Department would like to request utilizing Smith Lawn and Tree Service on an as needed basis while remaining within the appropriated budget. Town staff collaboratively determined a need for a contract through an Interlocal Agreement to purchase services and avoid duplicate procurement efforts and obtain benefits of volume purchasing. 42 Page 2 of 2 Financial Considerations: - Funding for the tree service will come from appropriated amounts in various budgets, Parks, Streets, Drainage and Trophy Club Park. Total expenditures for the year are not to exceed $100,000. Legal Review: - The Town attorney has reviewed and agrees of all documents as presented. Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends approval of utilizing tree services through the City of Southlake’s Interlocal Agreement. Attachments:  Smith Lawn and Tree Service letter to the Town of Trophy Club  City of Southlake contract with Smith Lawn and Tree Services  Agreement between the Town of Trophy Club and Smith Lawn and Tree Services 43 44 so '[IIIJ ORIGINAL DOCUMENT CITY OF SOUTHLAKE Council Action l Ord./Res.No. December 20,2021 Date Approved S/l/?Z The Paysage Group,LLC dba Smith Lawn and Tree 3200 Handley Ederville Rd. Richland Hills,Texas 76118 Attn: Mr.Glen Jennings Subject: Notification of Contract Renewal for Provide Tree Services for City of Southlake RFP1911B200TS190023 Dear: Mr.Jennings: The City of Southlake is providing notification of contract renewal, pending City Council approval, for"Provide Tree Services for City of Southlake RFP 1911 B200TS 190023". This is a multiple vendor awarded contract. Your company's portion of this contract is being renewed. This renewal shall become effective 2-18-2022 and after City Council approval CC Award date ell I Z?. )and shall continue in full force based on the terms and conditions of the initial award. Your company has not re uested an increase at this renewal. As such, all pricing, terms, and conditions of the original document shall remain in effect for this renewal period. The terms and conditions proposed and accepted in this renewal agreement are as follows: Line Items Awarded: All Line Items Payment Terms: Net 30 days(Unless otherwise noted—such as pre-and/or partial payment) Method of Payment: Shall be made by purchasing card or purchase order. Delivery Terms: FOB Destination Delivery Locations: IF STATED IN RFP DOCUMENT Term of Contract: Shall be effective for twelve months from date of renewal and is eligible for up to two(2)more one(1)year annual renewals. City Contact: Tim Slifka 817-748-8312 Send all billing to:City of Southlake accountspayable@ci.southlake.tx.us(preferred)or 1400 Main Street,Suite 420,Accounts Payable Southlake,TX 76092 Other Charges: The City of Southlake is a tax-exempt municipal corporation and is exempt from all federal, state,and local sales taxes. All other specifications, terms and conditions shall be as provided in the original procurement documents. No other attachments to or in response to this agreement will be accepted unless approved in writing by the Purchasing Manager or an authorized representative of the City of Southlake. Thank you for participating in our procurement process. Please call 817- 748-8312 with any questions. Sincerely leiTimSlifka Purchasing Manager CPPO, CP/ City of Southlake 1400 Main Street,Suite 420 o` t i i i ii,/ Southlake,Texas 76092 OJZ H A KF ',/,,, tslifka@ci.southlake.tx.us Attest: co / Fax: 817-748-8010 Shel ryic City Secre y ? -•5\ ' N Contract Renewal Accepted: 1— : Signed: Date: all '22 Ap oved as to Form Leg2rla};••..••'°•/ Mayor Huffman I M 111 M O City of Southlake City Attorn45 ORIGINAL DOCUMENT C:1IY CITY OF SOUTHLAKE LASOUTHLAKECouncilAction -_ Ord./Res.No. Date Approved I 1 I yl December 23,2020 The Paysage Group.LLC dba Smith Lawn and Tree 3200 Handley Ederville Rd. Richland Hills,Texas 76118 Attn: Mr.Glen Jennings Subject: Notification of Contract Renewal for Provide Tree Services tier City of Southlake RFP 1911 B200TS 190023 Dear: Mr.Jennings: The City of Southlake is providing notification of contract renewal, pending City Council approval, for "Provide Tree Services for City of Southlake RFP191113200TS190023". This is a multiple vendor awarded contract. Your company's portion of this contract is being renewed.This renewal shall become effective 2-18-2021 and after City Council approval CC Award date I—19-wag and shall continue in full force based on the terms and conditions of the initial award. Your company has not requested an increase at this renewal. As such, all pricing, terms, and conditions of the original document shall remain in effect for this renewal period. The terms and conditions proposed and accepted in this renewal agreement are as follows: Line Items Awarded: All Line Items Payment Terms: Net 30 days(Unless otherwise noted—such as pre-and/or partial payment) Method of Payment: Shall be made by purchasing card or purchase order. Delivery Terms: FOB Destination Delivery Locations: IF STATED IN RFP DOCUMENT Term of Contract:Shall be effective for twelve months from date of renewal and is eligible for up to three(3) more one(1)year annual renewals. City Contact: Tim Slifka 817-748-8312 Send all billing to: City of Southlake 1400 Main Street,Suite 420.Accounts Payable Southlake,TX 76092 or Email:accountspayableCc ci.southlake.tx.us Other Charges: The City of Southlake is a tax-exempt municipal corporation and is exempt from all federal, state,and local sales taxes. All other specifications, terms and conditions shall be as provided in the original procurement documents. No other attachments to or in response to this agreement will be accepted unless approved in writing by die Purchasing Manager or an authorized representative of the City of Southlake. Thank you for participating i our procurement process. Please call S 17-7.18-8312 with any questions. Sincerely, Tim Slifk — yttttttt:rtJ r Purchasing Manager CPPO. CP x ,`N AK •/o City of Southlake it- 1400 Main Street.Suite 420 c?• Southlake.Texas 76092 o- 0: i tslifka a ci.southlake.tx.us s est: • weida Fax:817-748-8010 r 4. A Shelley,T ' C C Secretary Contract •wal Ac pt d: 1 sit t* y\``` Signed Date: I 1 Ic1114 pprovtd to Form an, I. gality:111 Mayor Laura Hill 4/,# City of Southlake City Attorn- 46 SOUTHLAI<E ORIGINAL DOCUNILN 1' 0 CITY OF SOUTI-ILAKIL Council Action&\ January 29, 2020 Ord./Res. No. The Paysage Group. LLC dba Smith Lawn and Tree Date Approved rgI I$[Z6 3200 Handley Ederville Rd. Richland Hills, Texas 76118 Attn: Glen Jennings Subject Award Notification for Provide Tree Services for City of Southlake RFP 1911 B200TS190023 Dear Mr. Jennings, The City of Southlake is pleased to inform you that The Paysage Group, LLC dba Smith Lawn and Tree of Richland Hills. Texas is one of three (3)vendors being awarded "Provide Tree Services for City of Southlake RFP1911B200TS190023" The award and this agreement are based on your proposal to the City, copy enclosed, This is a multiple vendor award co tract. Your company's portion of the award is attached. This award was approved by the City of Southlake City Council on a t . The terms and conditions proposed and accepted in this agreement are as follows: Line Items Awarded All Line Items Payment Terms: Net 30 days(Unless otherwise noted-such as pre-and/or partial payment) Estimated Quantities: The City does not guarantee to purchase any minimum or maximum quantity but does contemplate purchasing the awarded items exclusively during the term of the contract from the multiple successful vendors. Method of Payment: Shall be made by City procurement card or purchase order Delivery Terms: FOB Destination Delivery Locations:Vendor Delivery or City employee pick-up Term of Contract: The term of awarded contract shall remain in effect for twelve months from date of award and is eligible for up to four(4)one(1)year annual renewals City Contact: Tim Slifka 817-748-8312 Send all billing to:City of Southlake 1400 Main Street,Suite 420,Accounts Payable Southlake,TX 76092 or via email to accountspayableci southlake tx.us Other Charges: The City of Southlake is a tax-exempt municipal corporation and is exempt from all federal, state, and local sales taxes. All other specifications. terms and conditions shall be as provided in the original procurement documents. No other attachment to or in response to this agreement will be accepted unless approved in wnting by the Purchasing Manager or an authorized representative of the City of Southlake. Thank you for participating in our procurement process. Please call 817-748-8312 with any questions Sincerely, Tim Slifica, CPPO, CPP otllllll/jlPurchasingManagerNLAKS rr.City of Southlake J, l '. 1400 Main Street, Suite 420 c-f Southlake, Texas 76092 tslifka(ci.southlake tx.us 0 i• rk test Y A helley,TR Contract and Z and Accepted i iJ ••.,• City SecretaryO. 11111t*```` Signed ' ;-v Date A v s o d ality I ayor Laura Hill City of Southlake City Attorney 47 Smith Lawn and Tree (U19) Quantity Item Required Unit of Measure Unit Price Total Cost Tree Pruning Services with a Two (2) Man Crew and 1-1 ,Equipment 1 Per Hr 138.00 $ 138.001 Tree Pruning Services with a Three (3) Man Crew 1-2 and Equipment 1 Per Hr_ 190.00 $ 190.00 Tree Pruning Services with a Four(4) Man Crew 1-3 and Equipment 1 Per Hr _ _ $ 240 00 $ 240 00 Tree Pruning Services with a Two(2) Man Crew and 2-1 'Equipment 1 Perr Hr 135.00 $ 135.00 Tree Pruning Services with a Three (3) Man Crew 2-2 and Equipment 1 Per Hr 184.00 $ 184.00 Tree Pruning Services with a Four(4) Man Crew 2-3 and Equipment _1 _ Per Hr 234.00 $234.00 3-1 2 man crew(1)tree climber-(1)ground man __1 Per Hr 138.00 ; $ 138.00 3-2 3 man crew(2)tree climber-i1) ground man 1 Per Hr 188.00 $ 188.00 3-3 4 man crew(2)tree climbers and (2) ground men 1 Per Hr 238.00 $238.00 4-1 Tree Cabling/Bracing, (2) man crew 1 Per Hr 148.00 $ 148.00_, 4-2 Air Spade Services with (2) man crew _ 1 Per Hr _ $ 150.00 $ 150.00 Additional crew member for Traffic Control, tree 4-3 pruning or tree removal services 1 Per Hr 55.00 $ 55.00 4-4 Knuckleboom Truck for debris removal with operator 1 Per Hr 184.00 $ 184.00 4-5 Bucket Truck with Operator 1 Per Hr 150.00 $ 150.00 Stump Grinding to Include All Stumps Regardless of; 4-6 'Diameter 1 Per Each 95.00 $ 95.00 Cost per hour for Certified Arborist to perform or 4-7 supervise work as required or requested 1 Per Hr 75.00 ' $ 75.00 5-1 Fertilization-Soil Injection/Foliar. Per Inch. 1 Per Inch 8.00 $ 8.00 5-2 Fertilization-Soil Injection/Foliar. Per Sq. Ft. 1 Per Square Foot $ 0.40 $ 0.40 5-3 Fertilization-Soil Injection/Foliar. Per Gallon 1 Per Gallon 2.50 $ 2.50 Pesticide Application-Soil Injection/ Foliar. Per 6-_1 ,Inch. 1 Per Inch 10.00 $ 10.00 Pesticide Application-Soil Injection/Foliar. Per Sq. 6-2 Ft. 1 ' Per Square Foot $ 0.50 $ 0.50 Pesticide Application - Soil Injection/Foliar. Per 6- 3 Gallon 1 Per Gallon $ 3.00 $ 3.00 All vendor travel charges should be included in hourly rates listed above. If they are not please list 7-1 ;travel charge per mile. 1 Per Mile Per Mile charge to job location after 50 miles from Per Mile After 50 7-2 76092 1 _ Miles 7-3 ;Fuel Surcharge 1 Per Each Invoice $ - $ - 48 Appendix B — Proposal Submittal Checklist: (To determine validity of proposal) V/ Appendix B(pages_9_through _17_)must he included in the proposal submittal Appendix C Conflict of Interest Form(page 17 )must be included in the proposal submittal. Form 1295 Certificate of Interested Party must be included in the proposal submittal.See Page 2. HB 89 and SB 252 Acknowledgement.Sec Page_15_. All pro losals submitted to the City of Southlake shall include this a,e with the submitted Pro)osal. RFP Number: RFP 1911 B200TS190023 Project Title: Provide Tree Services for City of Southlake Submittal 3:00 P.M. (CST), Tuesday January 7, 2020Deadline: Submit Electronically* to: https://southlake.bonfirehub.com/login Requires email account login and password. Proposer Information: Proposer's Legal Name: 'fly__ Gy SqP t.t'J . Li--C. m A JmtV-tr\L«L.i Tr Address: (32 x} .14QYl1C`_` L C yr—v t l\e_ c.y1 City,State&Zip 1,tCl-lirvo `t``S 7 4j I1 Federal Employers Identification Number# '447 7 Phone Number: Z- 2 Fax Number: E-Mail Address: ci Proposer Authorization 1,the undersigned,have the authority to execute this Proposal in its entirety as submitted and enter into a contract on behalf of the Proposer. Printed Name and Position of Authorized Representative: (;‘P..y\Gt,kiJI Signature of Authorized Representative: 1 L A AA Signed this :-7 (day)of 'OP(P_I'\;1Lt- month),) t ( (year) I learned of this Request for Proposals by the following means: Newspaper Advertisement City E-mail Notification Southlake Website Cold Call to City r• Mailed Me a Copy Other LL- Bonfire City of Southlake RFP1911 B200TSI90023 Page 9 of l8 49 Appendix B—Proposal (continues) REQUIRED PROPOSAL INFORMATION. IN ORDER FOR A PROPOSAL TO BE CONSIDERED COMPLETE, AND TO BE EVALUATED FOR A CONTRACT AWARD BY THE CITY, PROPOSER MUST SUBMIT ALL OF THE FOLLOWING INFORMATION: 1. Proposed Products and/or Services A. Product or Service Description: Proposers should utilize this section to describe the technical aspects, capabilities, features and options of the product and/or service proposed in accordance with the required Scope of Services as identified in Appendix A. Promotional literature, brochures,or other technical information may be used. B. Additional Hardware Descriptions: Proposers should also include in this section a detailed description of what additional hardware and/or software, if any, would be required by the City in order to fully utilize the goods and/or services proposed. C. Guarantees and Warranties: Each Proposer shall submit a complete copy of any warranties or guarantees provided by the manufacturer or Proposer with the Proposal submitted. D. Project Schedule/Delivery Date: Proposer must provide a project schedule noting all projected completion dates for segments of the Project, from start-up to completion,and all delivery dates for goods covered by the RFP. The Proposal must show the number of days required to deliver and install the product or equipment after the receipt of the City's Purchase Order. 2. Cost of Proposed Products and/or Services A. Pricing: Pricing shall reflect the full Scope of Services defined herein, inclusive of all associated cost for delivery, labor, insurance,taxes,overhead,and profit. B. Schedule of Pricing: Proposer shall quote unit pricing in accordance with the itemized listing of products or contract segments stated in the Scope of Services and using the following format: For this procurement the schedule of pricing is not available in hardcopy. You may access it via the online portal (www.southlake.bonfirehub.com). To submit your schedule of pricing, please download the Bid Table and fill it in accordingly per the sample below. For instructions on how to complete Bid Tables, please refer to this article on Bonfire's Support Website. Please note: even if you do not have additional responses, you must download and re- upload the blank document. This is to confirm that you do not require any additional costs. If you have any additional items,please fill out the Additional Responses template accordingly. 3. Term of Contract and Option to Extend Any contract resulting from this RFP shall be effective for twelve months from date of award. The City anticipates that contract shall be renewed pursuant to the availability of funds and at the discretion of the City. The following clauses shall be included in the contract: City of Southlake RFP1911B200TS190023 Page 10 of 18 50 A. Option_C'lause; It is agreed that City will have the option to extend the contract lOr up to ling-(4) additional yers, in one-year intervals. 'l'o exercise this option, the City shall serve notice 10 days prior to contract termination nr to the end of any one-year extension.The Option to lixtend will not be considered if limiting is unavailable or if the contractor's past perli rmancc is not within the industry standard. B. Escalation Clause: Should market conditions prevail which dictate an increase, the successful contractor may submit documentation requesting permission to increase pricing no later than 30 days after receiving notice from the City of its intent to extend the agreement. liscalation may only occur at the time of renewal and only upon securing the approval of the City in writing. Requests for price adjustments must he solely for the purpose of accommodating an increase in the contractor's cost, not profits. Vendors shall show in this quote their anticipated percent of escalation it/when the option to extend is exercised. The percent quoted will be a maximum. In addition, the percentage proposed will be a factor in determining the best value to the City. It is the average price over the period of the contract that will he the price factor considered in the evaluation of this quote. Quotes in which negative or no escalation is shown will he considered as 0%escalation. C. Price Increases Upon Extension: If approved by the City, the Contractor shall modify the rates charged by the Contractor to reflect any changes shown in the comparative statement delivered to the City. The maximum increase allowed under this provision shall be four percent(4%)per year. The City shall have authority, in its reasonable discretion, to determine the validity of any change in Contractor's rates.City cannot exercise the Option to Extend with any price increases unless the Vendor completes the section of the Quote requesting anticipated percentage of annual escalation. First Additional Year Escalation Percentage A. Second Additional Year Escalation Percentage C) % Third Additional Year Escalation Percentage Fourth Additional Year Escalation Percentage C^' % 4. Proposer's Experience/Staff A. Project Team: Identify all members of the Proposer's team (including both team members and management) who will be providing any services proposed and include information which details their experience. B. Removal or Replacement of Staff: if an assigned staff person must be removed or replaced for any reason,the replacement person must be approved by City prior to joining the project. C. Business Establishment: State the number of years the Proposer's business has been established and operating. If Proposer's business has changed names or if the principals operating the business operate any similar businesses under different names, or have operated any other businesses or changed the legal status or form of the business within the last five (5) years, all names, of predecessor business names, affiliated entities, and previous business entities operated by the principals,if different than present,must be provided; State the number of years' experience the business has: _4C9 ; and the number of employees: 7 D. Project Related Experience: All Proposals must include detailed information that details the Proposer's experience and expertise in providing the requested services that demonstrates the Proposer's ability to logically plan and complete the requested project. City of Southlake RFP 1911 B200TS190023 Page 11 of 1851 5. References Proposer shall provide lour (4) references where Pi up,f.ef- has pef Col flied similar to or the same types of services as described herein Reference Ill: Client/Company Name:, Contact Name: Contact Title: Tcc\ P1(.1f; -4\ 104 • L le I-- Phone: ,-,, Ls Date and Scope of Work Provided: t...11"1-\\<6;;32,_ `•cs,1 1 r .)1LA cl Reference#2: Client/Company Name: 1\ ,1-• ),•Jocz\A c\-\\ Contact Name: Contact Title: Ntk,)%4-4) 3 irr Phone: Email: 50 7 Date and Scope of Work Provided: i I ceo— t>ik,ks\rfo)1_00 - Reference#3: Client Company Name: 1 X C- Contact Name: Contact Title: 1\1\`')(./16--- ic2i-xfAv\ Phone: cs . Email: S 14:_aker, Date and Scope of Work Provided: 9c*.A•cw(Nr. rAi\A C CV-11.11 Reference#4: Client Company Name: — rContactName: Contact Title: r-INNA\P.r"l\aXam\-eaf\;:t•:\,.. rare:;1`cl \ Phone: Email: Rc'etri e•A•A\4,---(A.), 1-t Date and Scope of Work Provided: Tret-1.... ctur,a'Aus,) 11- A-N2 City of Southlake RFP1911B2(10TS190023 Page 12 of 18 52 6. Trade Secrets and/or Confidential In far n alion Trade Secrets and/or Confidential Infi)rnunion. This proposal (does) (does not) contain Trade secrets and/or confidential information. If applicable, describe such trade secrets and confidential information, and the basis for your assertion that such material qualities li r legal protection from disclosure. 7. Federal,State and/or Local Identification Information A. Centralized Master Bidders List registration number: B. Prime contractor I1UH /MWHI;registration number: C. An individual Proposer acting as a sole proprietor must also enter the Proposer's Social Security Number: # 8. Emergency Business Services Contact Notice During a natural disaster, or homeland security event, there may he a need for the City of Southlake to access your business for products or services after normal business hours and/or holidays. The City may request City employee pick up or vendor delivery of product or services. For this purpose,a primary and secondary emergency contact name and phone number are required. It is critical the vendor's emergency contact information remains current. City shall he contacted by E- mail with any change to a contact name or phone number of these emergency contacts. Updates may be emailed to vendors@ci.southlake.tx.us. All products or services requested during an emergency event are to be supplied as per the established contract prices, terms and conditions. The vendor shall provide the fee (pricing) for an after-hours emergency opening of the business, if any. In general,orders will be placed using a City of Southlake procurement card (Master Card) or City issued Purchase Order. The billing is to include the emergency opening fee,if applicable. The contractor shall provide the names, phone numbers and fee (pricing), if any, for an after-hours emergency opening of the business listed below. Business Name: ,jCn 1ri,, 1_c rY.y Contract#: R c)ar; v.L Description: Tr . ' . Cucr r%. Primary Contact(Name): a[6:„\ j 42 v1\tn. Primary Contact Phone Numbers: Home: j)- 6 c) Cell: '( )-Yet s G!( v Secondary Contact(Name): Ri-t-r F' ce Secondary Contact Phone Numbers: Home: I )- L-7.Ll Cell: ?l)-6b'.1--7.4 After Hours emergency opening fee,if applicable: $ .3LJO '"— City of Southlake RFP 1911 B200TS190023 Page 13 of 18 53 9. Cooperative Governmental Purchasing Notice Other governmental entities maintaining Interl„e:11 agreements with the City, may desire, hut are not obligated, to purchase goods and services defined in this Itl l' from the successful 13iddcr. All purchases by governmental entities, other than the City, will he billed directly to and paid by that governmental entity. The City will not be responsible li r another governmental entity's debts. I governmental entity will place their own orders with the successful Bidder and he responsible for ensuring full compliance with the RFP specifications. Prior to other governmental entities placing orders,the City will notify the successful Bidder of their intent. Please indicate below if you will permit other governmental entities to purchase from your agreement with the City. Yes,Others can purchase I J No, Only the City can purchase H. CONTRACT TERMS AND CONDITIONS. EXCEPT WHERE PROPOSER MAKES SPECIFIC EXCEPTION IN THE SUBMITTED PROPOSAL, ANY CONTRACT RESULTING FROM THIS RFP WILL CONTAIN THE FOLLOWING TERMS AND CONDITIONS, WHICH PROPOSER HEREBY ACKNOWLEDGES, AND TO WHICH PROPOSER AGREES' BY SUBMITTING A PROPOSAL: 1. Delivery of Products and/or Services A. Payment Terms: Unless otherwise specified in the Scope of Services or otherwise agreed to in writing by the City,payment terms for the City are Net 30 clays upon receipt of invoice. B. Warranty of Products and Services: All products furnished under this contract shall be warranted to be merchantable and good quality and fit for the purposes intended as described in this Proposal,to the satisfaction of City and in accordance with the specifications, terms, and conditions of the Scope of Services,and all services performed shall be warranted to be of a good and workmanlike quality,in addition to,and not in lieu of,any other express written warranties provided. C. Late Delivery or Performance: If Proposer fails to deliver acceptable goods or services within the timeframes established in the Project Schedule, the City shall be authorized to purchase the goods or services from another source and assess any increase in costs to the defaulting Proposer, who agrees to pay such costs within ten days of invoice. D. Title to Goods and Risk of Loss: For goods to be provided by Proposers hereunder, if any,the title and risk of loss of the goods shall not pass to City until City actually receives, takes possession, and accepts the goods and the installation of such goods, has tested the system,and determined that it is in good and acceptable working order. 2. Miscellaneous A. Independent Contractor: Proposer agrees that Proposer and Proposer's employees and agents have no employer-employee relationship with City. Proposer agrees that if Proposer is selected and awarded a contract, City shall not be responsible for the Federal Insurance Contribution Act FICA) payments, Federal or State unemployment taxes, income tax withholding, Workers Compensation Insurance payments, or any other insurance payments, nor will City furnish any medical or retirement benefits or any paid vacation or sick leave. B. Assignments: The rights and duties awarded the successful Proposer shall not be assigned to another without the written consent of the Purchasing Manager. Such consent shall not relieve the assigner of liability in the event of default by the assignee. C. Liens: Proposer shall indemnify and save harmless the City against any and all liens and encumbrances for all labor,goods,and services which may be provided to the City by Proposer or City of Southlake RFP1911 B200TS190023 Page 14 of 1854 Proposer's vendor(s),and if the City requests, a proper release of all liens or\atisfitctory evidence of freedom from liens shall he delivered to the City. D. Gratuities I Bribes: Proposer certifies that no bribes in the form of entertainment. gills, or otherwise, were oflbred or given by the successfid Proposer. or its agent or representative. to any City officer, employee or elected representative, with respect to this It FP or any contract with the City, and that if any such bribe is found to have been made this shall he grounds for voiding of the contract. E. Financial Participation: Proposer certifies that it has not received compensation from the City to participate in preparing the specifications or RFP on which the Proposal is based and acknowledges that this contract may he terminated andior payment withheld if this certification is inaccurate. F. Required Licenses: Proposer certifies that he holds all licenses required by the State of Texas for a provider of the goods and/or services described by the Scope of Services herein. G. Authority.to Submit Proposal and Enter Contract: The person signing on behalf of Proposer certifies that the signer has authority to submit the Proposal on behalf of the Proposer and to hind the Proposer to any resulting contract. H. Compliance with Applicable Law: Proposer agrees that the contract will he subject to, and Proposer will strictly comply with, all applicable federal, state, and local laws, ordinances, rules, and regulations. I. Compliance with 11B 89: Proposer agrees per 1-113 89 vendor shall not boycott Israel at any time while providing products or services to the City of Southlake. PI Yes, we agree I No, we do not agree I N/A J. Compliance with SA 252: Proposer agrees per SB 252 vendor shall not do business with Iran, Sudan or a foreign terrorist organization while providing products or services to the City of Southlakc. Xi Yes, we agree I I No, we do not agree 3. Financial Responsibility Provisions A. Insurance: The Proposer, consistent with its status as an independent contractor, shall carry, and shall require any of its subcontractors to carry, at least the following insurance in such form, with such companies,and in such amounts(unless otherwise specified)as City may require: i. Worker's Compensation and Employer's Liability insurance, including All States Endorsement, to the extent required by federal law and complying with the laws of the State of Texas; ii. Commercial General Liability insurance, including Blanket Contractual Liability, Broad Form Property Damage, Personal Injury, Completed Operations/Products Liability, Premises Liability, Medical Payments, Interest of Employees as additional insureds, and Broad Form General Liability Endorsements, for at least One Million Dollars($1,000,000) Combined Single Limit Bodily Injury and Property Damage on an occurrence basis; iii. Comprehensive Automobile Liability insurance covering all owned, non-owned or hired automobiles to be used by the Contractor, with coverage for at least One Million Dollars 1,000,000)Combined Single Limit Bodily Injury and Property Damage. B. Indemnification: Proposer agrees to defend, indemnify and hold harmless the City, all of its officers, Council members, agents and employees from and against all claims, actions, suits, demands, proceedings, costs, damages and liabilities, including reasonable attorneys' fees, court costs and related expenses,arising out of,connected with,or resulting from any acts or omissions of Proposer or any agent,employee,subcontractor, or supplier of Proposer in the execution or performance of this contract without regard to whether such persons are under the direction of City agents or employees. City of Southlake RFP1911B200TS190023 Page 15 of 18 55 Appendix C — Form CIQ JNFORMATION RE(;ARIMNG VENDOR CONFLICT OF INTEREST(NiEST1ONNAIRh; WHO: The tiillowing persons unlit file a l'ontlict of interest Questionnaire with the City if the person has an employment or business relationship with an officer of the ('ity that results in taxable income exceeding$2,500 during the preceding twelve month period, or an nlficer or a member of the officer's Wilily has accepted gills with an aggregate value ol'more than$250 during the previous twelve month period and the person engages in any of the following actions: I. contracts or seeks to contract for the sale or purchase of property, goods or services with the City, including any of the following: a. written and implied contracts, utility purchases, purchase orders, credit card purchases and any purchase of goods and services by the City; b. contracts for the purchase or sale of real property,personal property including an auction of property; c. tax abatement and economic development agreements; 2. submits a bid to sell goods or services,or responds to a request for proposal for services, 3. enters into negotiations with the('ity for a contract;or 4. applies for a tax abatement and/or economic development incentive that will result in a contract with the City THE FOLLOWING ARE CONSIDERED OFFICERS OF THE CITY: 1. Mayor and City Council Members; 2. City Manager; 3. Board and Commission members and appointed members by the!Mayor and City Council; 4. Directors of 4A and 4B development corporations; 5. The executive directors or managers of 4A and 4B development corporations;and 6. Directors of the City of Southlake who have authority to sign contracts on behalf of the City. EXCLUSIONS: A questionnaire statement need not be filed if the money paid to a local government official was a political contribution,a gift to a member of the officer's family from a family member;a contract or purchase of less than$2,500 or a transaction at a price and subject to terms available to the public;a payment for food,lodging, transportation or entertainment; or a transaction subject to rate or fee regulation by a governmental entity or agency. WHAT: A person or business that contracts with the City or who seeks to contract with the City must tile a Conflict of Interest Questionnaire"(FORM CIQ)which is available online at www.ethics.state.tx.us and a copy of which is attached to this guideline. The form contains mandatory disclosures regarding"employment or business relationships" with a municipal officer. Officials may be asked to clarify or interpret various portions of the questionnaire. WHEN:The person or business must tile: I. the questionnaire—no later than seven days after the date the person or business begins contract discussions or negotiations with the municipality, or submits an application, responds to a request for proposals or bids,correspondence,or other writing related to a potential contract or agreement with the City;and 2. an updated questionnaire—within seven days after the date of an event that would make a filed questionnaire incomplete or inaccurate. It does not matter if the submittal of a bid or proposal results in a contract.The statute requires a vendor to file a FORM CiQ at the time a proposal is submitted or negotiations commence. WHERE: The vendor or potential vendor must mail or deliver a completed questionnaire to the Finance Department. The Finance Department is required by law to post the statements on the City's website. ENFORCEMENT: Failure to file a questionnaire is a Class C misdemeanor punishable by a fine not to exceed 500. It is an exception to prosecution that the person files a FORM CIQ not later than seven business days after the person received notice of a violation. NOTE:The City does not have a duty to ensure that a person files a Conflict of Interest Questionnaire. City of Southlake RFP1911B200TS190023 Page 16 of 18 56 CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For vendor or other person doing business with local governmental entity This questionnaire reflects changes male to the law by M.B. 1491. 60ih Lea.. Regular Session. OFFICE USE ONLY This questionnaire is being filed in accordance ::ith Chapter 176.Local Government Code Date Receo.ed by a person who has a business relationship as defined by Section 176.001 i 1-a l ith a local governmental entity and the person meets requirements under Section 176.0061 a By law this questionnaire must be filed Ith the records aaminlstrator of the local governmental entity riot rater than the 7th business day after the date the person becomes a. are of facts that require the statement to be filed. See Section 176.006.Local Government Code A person commits an offense if the person knowingly violates Section 176 006 Local Government Code.An offense under this section Is a Class C misdemeanor. 11 Name of person who has a business relationship with local governmental entity. LiCheck this box if you are filing an update to a previously filed questionnaire. iThe law requires that you file an updated completed questionnaire with the appropriate filing authorih not later than the 71)business day after the date the originally filed questionnaire becomes incomplete or inaccurate i 3 Name of local government officer with whom filer has employment or business relationship. Name of Officer This section (item 3 including subparts A 6 C S Di must be completed for each officer with whom the filer has an employment or other business relationship as defined by Section 17' 0Oli Ia. Local Government Code Attach additional pages to this Form CIO as necessary A. Is the local gotiernrnent officer named in this section recer.nig ,r likely to receive taxable income other than investment w come.from the filer of the questionnaire'', I Yes n No 6 Is the filer of the questionnaire receiving or likely to receive taxable income.other than investment income. from or at the direction of the local goverrirraent officer named in this section AND the taxable income is not received from the local governmental entity', I] Yes I] No C Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer serves as an officer or director or holds an ownership of 10 percent or more? EjYes No 0 Descnbe each employment or business relationship with the local government officer named in this section Signature of person doing business with the govemtnental entity Date Adopted 3i12Si'2007 City of Southlake RFP1911B200TS190023 Page 17 of 18 57 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos.1,2,3.5,and 6 if there are no of Wrested paructi CERTIFICATION OF FILING 1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 2019-571539 The Paysage Group dba Smith Lawn and Tree Richland Hills,TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is 12/19/2019 being filed. City of Southlake Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identity the contract,and provide a description of the services,goods,or other property to be provided under the contract RFP1911B200TS190023 Provide Tree Services for City of Southlake Nature of interest d Name of Interested Party City,State,Country(place of business)check applicable) Controlling 1 Intermediary 5 Check only if there is NO Interested Party. 6 UNSWORN DECLARATION t l My name is 7\r l (?t y-V,Ij and my date of birth is l L:S/ I of CJ l My address is 1\LO S\r'i{ite3c 1V il.i , ) street) city) state) (zip code) (country) I declare under penalty of perjury that the foregoing is true and correct. f Executed in att-ca4 County, State of 61 y ,on the Li day of (' _ 20 . month) (year) J , 1- AA f Ct Signature of authon d aggentent of contr ting business entity Declarant) Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.1.3a6aaf7d 58 Truck U Dept. Equipment Year/Make/Model VIN Plate 5 _ TREE Chip Truck 2007 HINO 268 5PVNE8JT072S51632 HXG2162 14 TREE Chip Truck 2004 FREIGHTLINER 1FVACWDC24HNO7951 CSW518S 29 TREE Chip Truck 2015 FORD F750 3FRNX7FC7FV711225 FKK17S1 35 TREE Chip Truck 2013 HINO 338 5PVNV81T6D4S52994 DHM4978 57 TREE Chip Truck 2017 FORD F750 1FDNX7DCXHDB11010 KNV0489 1 TREE Wood Chipper 2010 VERMEER 1800 1VRY131Z8A1002685 M083193 2 TREE Wood Chipper 2014 VERMEER 1800 1VRY131ZXE1004380 M006087 3 TREE Wood Chipper 2012 VERMEER 1800 1VRY131Z0C1003140 M006057 4 TREE Wood Chipper 2014 VERMEER 1800 1VRY131Z3E1004415 M018607 5 TREE Wood Chipper 2018 VERMEER 1800XL 1VRY151Z7J1006836 M033138 63 TREE Bucket Truck 2019 FREIGHTLINER M2-106 1FVACWFD2KHKA1590 LBX6139 21 TREE Bucket Truck 2020 FREIGHTLINER M2106 1FVACWFC7KHKS6626 KS6626 65 TREE Knuckleboom 2018 PETERBUILT 1NPCL70X91D492976 LBG2266 25 TREE Knuckleboom 2020 MACK GRANITE 1M2GR4GCOLM017613 MPH0359 6 TREE Tree Fert.Truck 2004 FORD F650 TRUCK 3FRWF65254V604729 CVT4803 13 TREE Stump Grinder 2017 Bandit 2550 N/A N/A 24 TREE Pickup 2019 DODGE RAM 2500 3C6UR5HL5KG683306 56893E5 12 TREE Arrow board Trk 2006 FORD F150 1FTRF12206KD99595 AA41413 43 TREE Pickup 2015 FORD F150 1FTEW1EPSFKF16383 GVR9825 59 r iINTERNATIONALSOCIETYOFARBORICULTURE CERTIFIED ARBORIST" Glen Jennings Having successfully completed the requirements set by the International Society of Arboriculture, the above named is hereby recognized as an ISA Certified Arborist" 11151iii).' Luana Vargas Caitlyn Pollihan Director of Credentiating Services Executive Oireclor ACCREDITEDInternationalSocietyofArboricultureInternationalSocietyofArboriculture 01347 MW-0532A 21 Nov 1998 31 Dec 2022 ISOIIEC Personnel Certification Program y Certification Number Certified Since Expiration Date ISA Certified Arborist° 60 Applicators are required to keep certificates of completion for 12 months following renewal of a license. 4 TAC§7.24(s) Regulations and statutory provisions governing pesticide applicator licensees and their use of pesticides may be found in Chapter 7,Title 4,of the Texas Administrative Code and Chapter 76 of the Texas Agriculture Code, respecti 7ely. TDA's web site provides convenient links to these laws. Failure to comply with these laws, including misuse of any pesticide. may result in revocation, suspension, modification,or probation of your license and/or assessment of monetary administrative penalties. If you have any questions regarding your license, please contact our Austin headquarters toll free at(877) LIC- AGRI(877-542-2474),or visit our web site at www.TexasAgriculture.gov. For the hearing impaired, you may call Relay Texas(800)735-2988 (voice) or(800)735-2989 (TDD)or visit our web site. Categories: 3A TEXAS DEPARTMENT OF AGRICULTURE P.O.BOX 12847 AUSTIN,TEXAS 78711-2847 Descriptions: or„ 1A Field Crop 3A Landscape Maint COMMERCIAL PESTICIDE APPLICATOR 7 1 B Fruit,Nut,&Veg 3B Nursery Plant Prod LICENSE 1 C Pasture&Rangeland 4 Seed Treatment GLEN JEGININGS441171Y 1 D Vertebrate Pest 5 Vegetation Mgmt 1 E Farm Commodity Pest 6 Aquatic TDA Client No:00454505 Control 1148 WHISTLE STOP DR License No: 0592971 1F Animal Health 7 Demonstr&Research SAGINAW TX 76131 Effective Date: 05/31/2019 1G Citrus 8 Reg Pest Control Expires: 05/31/2020 1 H Livestock Prot Collar 9 Aerial Application 111 11 M-44 Device 11 Soil Fumigation Inc2 Forest Pest Control 12 Public Health Pest Control Iul tf Vector) Front side Back side LAMINATION ADVISED: Please cut out along heavy black lines, placing front and hack sides together, and laminate. TEXAS DEPARTMENT OF AGRICULTURE r r4 COMMISSIONER SID MILLER P. O. BOX 12847 AUSTIN, TEXAS 787 1 1-2847 877) LIC-AGRI (877-542-2474) For the hearing impaired: (800) 735-2989 TDD (800) 735-2988 VOICE www.TexasAgriculture.gov COMMERCIAL PESTICIDE APPLICATOR LICENSE This is to certify that the person whose name appears below has met the requirements of Texas Agnculture Code Chapter 76,relating to application of restricted-use or state-limited-use pesticides or regulated herbicides. This license is issued for purchase and application of restricted-use or state-limited-use pesticides or regulated herbicides to be used according to label directions consistent with the use categories listed below GLEN JENNINGS TDA Client No:00454505 1148 WHISTLE STOP DR License No: 0592971 SAGINAW TX 76131 Effective Date. May 31, 2019 Expires:May 31, 2020 Categories: 1101111111 1111 1111 3A 61 lIllk___.L.—W__ __LillIlli___Allli i Smith Lawn and Tree1111 I Richland Hills, Texas 0l I J i I Is , 1ci I-Cd1ic 7 bll 1/1c 11'c t are i idu rtrti 1 \s or`Iailiill for:1 A. ACCREDITEO) J \Li/hort•nt.' (t, .'l/71ta/ /'l1.7rw.: 1'ra ll.L':: f' tl1IJ1Vl,/llt t' 1! ill, Uh l/T1111 Fl I7/.Itll'.I; l.,r. stlI I i. ii1i: R ,(1':' I)lc7111'.': .71i 1, F o c7,A DUSTKr a' ._.':', .r I/ ,111t7ii111 =.'rrnc.'. CONFIDENCE S. .- . Smith Lawn and Tree Richland Hills, Texas i41< moll/law, cr ieL ri.f/le .IJIII, is i7ool:C,717.7+ .7 :ziac' 5/1i/17411Illsammo/ 1i't1•03ll,il/,ll/ .v i•ll1/t•.Il.' is 1'o1h1 117i•o77q/1 5/18/020 . r ilMar I8. 2017 I I)llc• I't1I)-rI I:011,,•,l I1it•1 I'rot:r,7n7 L'I l i.:cr 62 CITY OF SOUTHLAKE ADDENDUM NUMBER# 1 To: All Proposers Date: December 23,2019 Request for Proposal: RFP1911B200TS1900023 Provide Tree Services for City of Southlake Proposal Due Date: 3:00 p.m.,Tuesday January 7,2020 1. Addendum No. 1, dated December 23, 2019, per Addendum #1, the City of Southlake is answering vendor submitted questions. Question: Will this proposal need to take into consideration any pruning or line clearance trimming within 10' of high voltage powerlines? Answer: No. Pruning or trimming services around high voltage powerlines are coordinated through the electrical provider. 2. There are no other changes. W/2 „ Mary organ Deputy Director, Finance City of Southlake In the submission of their proposal, Proposer must acknowledge receipt of this addendum. Proposer shall acknowledge this addendum by signing and returning one copy of this notice with their proposal submission. Signed: A Dated: I 2_7/ 2619 Company Name:TV e f 361 fr',.., fJ C;l S M Le-t 1 . ,w,l 1-e City of Southlake • Finance Department • 1400 Man Street,Suite 420 • Southlake,Faxes 76092 617.748.8312 63 Primary Responses Success:All dad is valid! MOM9' cfaos anda rs Ytie/1.twa Unit Price 1etrOeat Services With Aborist Success:All values provided Bid a1.1 Tres Pruning Services with a Two(2)Man Crew 1 Per Hr S 13800 S 13800 and Equipment Success:All values provided Bid r1-2 Tree Pruning Services with a Three(3)Man Crew 1 Per Hr S 190 00 S 190 00 and Equipment r1-3 Tree Pruning Services with a Four(4)Man Crew 1 Per HI S 240 00 S 2a0 00 Success:All values provided Bid and Equipment Services Without Aborist Success:Al values provided Bid r2-1 Tree Pruning Services with a Two(2)Man Crew 1 Per Hr S 13500 5 135 00 and Equipment Suews:All values provided Bid #2- 2 Tree Pruning Services with a Three(3)Man Crew 1 Per Hr S 184 00 S 184 00 and Equipment Success:All values provided Bid r2-3 Tree Pruning Services with a Four(4)Man Crew I Per Hr S 234 00 S 234 00 and Equipment Roadway Right of Way Clearing Success:All values provided Bid r3-1 2 man crew(1)tree climber—(1)ground man I Per Hr $138 00 $13800 Success:All values provided Bid d3-2 3 man crew(2)tree climber—(1)ground man I Per Hr S 188 00 S 188 00 Success:All values provided Bid r13-3 4 man crew(2)tree climbers and(2)ground men I Per Hr S 238 00 5 238 00 Additional Services Success:All values provided Bid *4-1 Tree Cabling/Bracing,(2)man crew 1 Per Hr S 148 00 S 148 00 Success:All values provided Bid a4-2 Air Spade Services with(2)man crew 1 Per Hr S 150 00 S 150 00 Success:All values provided Bid rd-3 Additional crew member for Traffic Control,tree 1 per Hr 5 55 00 S 55 00 pruning or tree removal services Success:All values provided Bid 04-4 Knuckleboom Truck for debris removal with 1 Per Hr S 184 00 S 184 00 operator Suums All values provided Bid #4-5 Bucket Truck with Operator I Per Hr 5 150 00 S 150 00 Success:All values provided Bid 84-6 Stamp Grinding to Include All Stumps 1 Per Each S 95 00 S 95 00 Regardless of Diameter Cost per hour for Certified Arborist to perform or Success:All values provided Bid 14-7 1 Per Hr S 75 00 5 75 00 supervise work as required or requested Fertilization-Soil Injection 1 Foliar Success:All values provided Bid 05-1 Fertilization—Soil Injection I Foliar.Per Inch. I Per Inch S 8 00 S 8 00 64 Success:All vetoes provided Bid 2 Fertilization-Soil Injection I Foliar.Per Sq.Ft. Ias- Per Square Fool 5 0 40 5 0 40 Success,All values provided Bid its-3 Fertilization-Soil Injection I Foliar.Per Gallon I Per Gallon S 2 50 5 2 50 Pesticide Application-Soil Injection I Foliar Success:All values provided Bid ae-i Pesticide Application-Soil Injection I Foliar.Per per loco 5 Io oo 5 Io 00 Inch. Success:All values provided Bid 06-2 Pesticide Application-Soil Injection/Foliar.Per I Per Square Foot 5 0 50 5 o so Sq.Ft Success:All velue.provided Bid e63 Pesticide Application-Soil Injection/Foliar.Per I per Gallon 0 300 s 300 Gallon Additional Vendor Fees Not Listed All vendor travel charges should be included in Success:All values provkled Bid a7-I hourly rates listed above.If trey are not please 1 Per Mile $0 00 5 0 00 list travel charge per mile. Success:AS values provided Bid a 2 Per Mile charge to job location after 50 miles I per Mae After 50 5 0 00 5 0 00 from 76092 Miles Success:MI values provided Bid 07-3 Fuel Surcharge I Per Each Invoice S 0 00 5 0 00 65 AGREEMENT BETWEEN TOWN OF TROPHY CLUB AND SMITH LAWN AND TREE The Town of Trophy Club and Smith Lawn and Tree have agreed to enter into a contract that includes all of the terms and conditions of the contract between Smith Lawn and Tree and the City of Southlake, Texas. The Town of Trophy Club Texas has an Interlocal Purchasing Agreement with the City of Southlake that satisfies all state purchasing laws. Therefore, the parties agree to the terms and conditions of the agreement that is attached and incorporated herein as Exhibit A with the following amendments: 1)Contact Tony Jaramillo Director of Parks and Recreation 1 Trophy Wood Drive Trophy Club, TX 76262 1) The initial term of this agreement shall begin on November 1, 2021. The initial term will be for a two year period with options to renew for four additional two-year periods. ACCEPTED AND AGREED TO BY Smith Lawn and Tree: APPROVED: ___________________________________________ ACCEPTED AND AGREED TO BY THE TOWN OF TROPHY CLUB TOWN COUNCIL: APPROVED: _____________________________________________ Alicia Fleury, Mayor 66 Page 1 of 2 To: Mayor and Town Council From: Tony Jaramillo, Director of Parks and Recreation CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Pavilion Replacement at Trophy Club Park Town Council Meeting, March 22, 2022 Agenda Item: Consider and take action regarding a requisition for procurement of the replacement of three pavilions at Trophy Club Park and authorizing the mayor or her designee to execute all necessary documents (T. Jaramillo). Strategic Link: Infrastructure and Development: Maintain and improve all Town Infrastructure. Background and Explanation: Picnic pavilions ten, eleven, and twelve located at the north end of Trophy Club Park were damaged during past flood activity. The replacement pavilions will have the ability to be removed by staff before experiencing flood activity to prevent any damage. Staff is requesting authorization to replace the three pavilions at Trophy Club Park and approving an estimate provided by Total Recreation Products, Inc. The cost for each pavilion including freight is $10,768.97; the total amount to replace three is $32,306.91. A reimbursable grant was awarded to the Town by Texas Parks and Wildlife to repair the road and replace these pavilions within Trophy Club Park in the amount of $160,000 and the Trophy Club Park’s responsibility is $40,000. The cost breakdown is explained in the Financial Consideration section of this staff report. 67 Page 2 of 2 Financial Considerations: Funding is available in the Trophy Club Park Fund with the ratification of the TPWD Grant and approval of the Budget Amendment #1. The grant will cover $25,845.52 and the Trophy Club Park Fund will cover $6,461.39 for the replacement of the pavilions. There is $97,500 in unspent capital expenses available in the Trophy Club Park Fund. Legal Review: Not applicable Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends approval of the three-pavilion replacement at Trophy Club Park. Attachments:  Total Recreation Products Pavilion Estimate  Pavilion Rendering  Requisition Request 68 Town of Trophy Club Attn: Ramiro Ramirez #1 Trophy Club Dr. Trophy Club, TX 76262 Phone: 817-845-3507 rramirez@trophyclub.org Ship to Zip 75126 Quantity Part # Description Unit Price Amount 1 32634 Other - 12'X12'X10' Eave Height Umbrella Cantilever Square Shade- 1 Dome L:12' x W:12' x H:10' Umbrella Cantilever Square Shade, 1 Column Embedded as per engineering specifications. Price includes discount of $596.97 $3,382.83 $3,382.83 1 Drawings Other - Sign & Sealed Engineered Drawings- Price inculdes a discount of $141.75 $803.25 $803.25 1 Surcharge Other - Steel Surcharge $545.38 $545.38 1 INSTALL Other - Installation- Installaon of Above Shade Only; No other site work, demolion or concrete work included. Acquision of any and all permits is the sole responsibility of the customer. Standard installaon does not include any extra or addional machinery, drillers, etc., for rock excavaon. If rock condions are encountered, addional charges will apply. $5,107.14 $5,107.14 Contract: Buy Board Contract #592-19 Sub Total $9,838.60 Freight $930.37 Total $10,768.97 Comments Freight Calculated to Installer Address DUE TO RISING FUEL COSTS, FREIGHT SHOWN IS ESTIMATED FREIGHT. ACTUAL FREIGHT WILL BE DETERMINED AT THE TIME OF YOUR ORDER. PLEASE FEEL FREE TO CONTACT US TO VERIFY CURRENT FREIGHT CHARGES PRIOR TO PLACING YOUR ORDER. Important Terms & Conditions - Please Review To place an order, you must provide one of the following: a Purchase Order assigned to Total Recreation; or this Price Quotation, signed by an authorized purchaser, with a check made payable to Total Recreation. Total Recreation Products, Inc. 17802 Grant Road Cypress, Texas 77429 Phone: 281-351-2402 Toll Free: 800-392-9909 Fax: 281-351-2493 03/04/2022 Quote # 102436-01-01 TP-02077-22 Trophy Club Park - Shade Page 1 of 3 69 This quotation explicitly excludes any and all items not expressly specified or identified above. No other product, equipment, or service is included, regardless of any Contract Document, Contract Section, Plans, Specifications, Drawing, or Addendum. Lead times for most equipment have been extended and delivery dates will be estimated after all order documents have been received and payment terms have been approved. A current, approved credit application is required for N30 terms. To place an order, you must provide a purchase order or a signed Total Recreation Products, Inc. (hereafter described as TRP) quote, assigned to TRP. Neither general contractor nor subcontractor contracts can be accepted. Purchase documents that contain indemnity or hold harmless conditions cannot be accepted. Retainage is not permitted. The following must be received before your order can be processed: complete billing and shipping addresses, a contact name and phone #, and all color choices. Manufacturer's colors may vary from year to year. You are responsible for ensuring that any required submittal approvals are completed before placing your order for processing. TRP reserves the right to limit submittals to one copy. Shop drawings, bluelines, sepias, are not available. Closeout documents may be limited to TRP standard issue. If Sales Tax Exempt, a copy of your tax exemption form or resale certificate must accompany your order, or any applicable sales tax, will be added to your invoice. TRP cannot hold orders or store equipment. Equipment is invoiced when shipped. If a cash sale, your payment must be received in full before the order will be processed. Contractors must also provide copies of current, fully executed bid/performance/payment bonds, as applicable. Pricing shown does not include any charges for permits, bonding, prevailing wage, or additional insured certifications. Unless otherwise noted, any quantity of surfacing or playcurbs quoted has been calculated specifically for the equipment and layout shown. No additional surfacing or curbing is included, and no allowance has been made, for an unleveled, convoluted or larger site, or for a different layout. TRP is NOT responsible for any surface, curbing, border, or drain that is provided by others. Also please confirm that your area is adequate for the equipment that you are purchasing. Installation charges, if quoted, are for a "standard" installation unless specifically noted to be otherwise. Installation charges are due upon completion. Standard installations are based upon a soil work site, that is freely accessible by truck, (no fencing, tree/landscaping or utility obstacles, etc.), and level, (+/- 1-2% maximum slope). An accessible water source must be available to the installer. Any site work that is not expressly described is excluded. Standard installation does not include any extra or additional machinery, drillers, etc., for rock excavation. If rock conditions are encountered, additional charges will apply. Standard installations generally require from 2-10 business days to complete, depending upon the amount and type of equipment, site conditions, weather, and the installer's schedule. Work may or may not be performed in consecutive days. Playcurbs are staked in, not set in concrete. Engineered wood fiber and shredded rubber surfacings are spread, not compacted, rolled, or watered. Landscape timbers are not warranted. The Customer is responsible for locating and clearly marking all underground utilities in the installation area before any installation work can begin. The installer is not responsible for damages, repairs, or discontinuance of business due to damaged utilities. If applicable, sprinkler system locates, re-working and repairs are excluded from installation charges. Installation of all products, (equipment, borders, fall surfacing and amenities) are as quoted and approved by acceptance of quotes and drawings. As a precautionary measure, work in progress areas will be taped off at the end of the workday. Pier spoils from installation shall be spread at site, site will be left rough grade. Trash disposal is the responsibility of the Customer. The installer is not responsible for any damages or re-work resulting from after hours events or activities during the work in progress period. Temporary fencing is only provided by specific request, and additional charges will apply. Collectively and/or individually, not the manufacturer, TRP, their representatives, nor the installation company shall be held liable for any damages resulting from misuse, vandalism, or neglect. Any deviations from approved and accepted placement of all items, along with additional work, over and above quoted items, will be chargeable to the customer. Once work is completed the customer will be notified if present at the job site, and all responsibility of any new work will be transferred to the customer. The customer is responsible for maintaining the integrity of completed installation work until all components have seated and/or cured (concrete footings, etc.). Your project site must be completely prepared and ready to receive your equipment before any installation work begins. Acquisition of any and all permits is the sole responsibility of the customer. Additional charges may be billed for any extra hours or trips needed as a result of the work site not being ready. Neither the installation contractor, TRP will NOT be responsible for delays caused by shortages, incorrect parts, weather conditions, other contractors, or lack of site readiness. If you are receiving your equipment, you are responsible for unloading and accepting delivery from the freight company and reporting any damaged freight or shortages on the freight bill at the time. You will also be responsible for a complete inventory of your received equipment and reporting any discrepancies to us immediately. Neither the freight company nor the manufacturer will resolve shipment discrepancies that are not reported immediately. Make sure that all items have been received before any type of installation work is scheduled. The freight carrier will be instructed to call your designated contact 24 hours before delivery to arrange a delivery appointment. Once accepted, orders can only be changed or canceled with the consent of TRP, and on terms that will indemnify them against loss. Changed or canceled orders are subject to a $100.00 service charge. Additionally, canceled orders are subject to a 25% restocking fee, plus freight charges (to and from). Built-to-order equipment orders are non-cancelable. Changes to orders that have been shipped and invoiced are subject to the above $100.00 service charge plus additional restocking/return charges of 25%. Non-returnable items shall be charged at full invoice value. Any return transportation charges shall be for the Buyer's account. Replacement parts are also subject to the cancellation/returns policy. Please carefully review any research information that has been sent to you and confirm that you are ordering the correct replacement parts for your equipment. This quotation is valid 30 days. After 30 days, please request an updated quote. Prices may be subject to material and fuel surcharges at the time of shipment and are subject to change without notice. Current prices will apply at the time of shipment. Acceptance of this quote indicates your agreement to TRP'S credit terms, which are net 30 days, FOB shipping with approved credit. Any deviations from this proposal may invalidate the quoted pricing and/or terms. Total Recreation Products, Inc. 17802 Grant Road Cypress, Texas 77429 Phone: 281-351-2402 Toll Free: 800-392-9909 Fax: 281-351-2493 03/04/2022 Quote # 102436-01-01 TP-02077-22 Trophy Club Park - Shade Page 2 of 3 70 Payment terms: net 30 days for tax supported governmental agencies. A 1.5% per month finance charge will be imposed on all past due accounts. Equipment shall be invoiced separately from other services and shall be payable in advance of those services and project completion. Retainage not accepted. Please complete and return with your required form of payment: Acceptance of quotation: Accepted By (printed): _________________________________ P.O. No: _____________________________ Signature: ___________________________________________ Date: ________________________________ Title: _______________________________________________ Phone: ______________________________ Facsimilie: __________________________________________ Purchase Amount: $10,768.97 Order Information: Bill To: _____________________________________________ Ship To: _________________________________________ Company: ___________________________________________ Company: ________________________________________ Attn: ________________________________________________ Attn: ____________________________________________ Address: _____________________________________________ Address: _________________________________________ City, State, Zip: _______________________________________ City, State, Zip: ___________________________________ Contact: ______________________________________________ Contact: _________________________________________ Email Address: _______________________________________ Email Address:_____________________________________ Tel: _________________________________________________ Tel: ____________________________________________ Fax: _________________________________________________ Fax: ___________________________________________ For non-taxable purchases: Please also provide a copy of your Sales Tax Exemption Certificate or Resale Certificate. Total Recreation Products, Inc. 17802 Grant Road Cypress, Texas 77429 Phone: 281-351-2402 Toll Free: 800-392-9909 Fax: 281-351-2493 03/04/2022 Quote # 102436-01-01 TP-02077-22 Trophy Club Park - Shade Page 3 of 3 71 5050.25 10 13 8.83883476 0 2.875011 2.875011 12 12.42 Standard Embedded 3.46 3 N/A 3 Out of range 5.87 4.08 N/A N/A N/A 12 12 X 12 Dome Qty: 1 Column Qty: 1 72 TOWN OF TROPHY CLUB Date: 3 /1512022 Vendor <Name & A ddress) Total Recreation Products , Inc. 17802 Grant Rd Cypress , TX 77429 Account Number 09400-83700 Trophy Club Park -Shade Co-op info : Buyboard #592-19 Vendor Packet Active? -Yes PURCHASE REQUISITION FORM Delivery Address 1 Trophy Wood Drive Trophy Club, TX 76262 Description Attachments -Total Recreation Products quote #102436-01-01 dated 3 /412022 Budget Information -Purchase approved through Texas Parks & Wildlife Grant Tony Jaramillo Requested by : Finance Approved by: PO Number ------ Department Parks and Rec. Project# _____ _ Ouantitv Unit Amount Total Amount 3 10,768 .97 $ 32 ,306 .91 Total $ 32,306.91 Approved by : The Town of Tro p hy Club must have a c o mpleted Vendo r Packet on file b efore a requisition can be accepted by the Finance Department. 73 Town of Trophy Club Attn: Ramiro Ramirez #1 Trophy Club Dr. Trophy Club , TX 76262 Phone: 817-845-3507 rramirez@trophyclub .org Total Recreation Products , Inc. 17802 Grant Road 1 Cypress , Texas 77429 Phone : 281-351-2402 Toll Free : 800-392-9909 Fax: 281 -351 -2493 TP-02077-22 Trophy Club Park -Shade 03/04/2022 Quote# 102436-01-01 ShiptoZip 75126 Quantity Part# Description Unit Price Amount 32634 Drawings Surcharge INSTALL Other-12'X12'X10' Eave Height Umbrella Cantilever Square Shade- 1 Dome L:12 ' x W:12 ' x H:10' Umbrella Cantile ver Square Shade, 1 Column Embedded as per engineering specifications. Price includes discount of $596.97 Other -Sign & Sealed Engineered Drawings- Price inculdes a discoun t of $141 . 75 Other -Steel Surcharge Other -Installation- Installation of Above Shade Only; No other site work, demolition or concrete work included. Acquisition of any and all permits is the sole responsibility of the customer. Standard installation does not include any extra or additional machinery, drillers, etc., for rock excavation. If rock conditions are encountered, additional charges will apply. Contract: Buy Board Contract #592-19 Comments Freight Calculated to Installer Address $3 ,382 .83 $3 ,382 .83 $803.25 $803 .25 $545 .38 $545.38 $5 ,107 .14 $5 ,107 .14 Sub Total $9 ,838 .60 Freight $930 .37 Total $10 ,768.97 DUE TO RISING FUEL COSTS, FREIGHT SHOWN IS ESTIMATED FREIGHT. ACTUAL FREIGHT WILL BE DETERMINED AT THE TIME OF YOUR ORDER. PLEASE FEEL FREE TO CONTACT US TO VERIFY CURRENT FREIGHT CHARGES PRIOR TO PLACING YOUR ORDER . lm(!ortant Terms & Conditions -Please Review To place an order, you must provide one of the following : a Purchase Order assigned to Total Recreation; or this Price Quotation, signed by an authorized purchaser, with a check made payable to Total Recreation. Page 1 of 3 74 Total Recreation Products, Inc. 17802 Grant Road 1 Cypress , Texas 77429 Phone : 281-351-2402 Toll Free: 800-392-9909 Fax: 281-351-2493 TP-02077-22 Trophy Club Park -Shade 03/04/2022 Quote# 102436-01-01 This guotation exP.licitly excludes any and all items not exP.ressly...§J:lecified or identified above . No other product, equipment, or service is included, regardless of any Contract Document, Contract Section , Plans , Specifications , Drawing , or Addendum . Lead times for most equipment have been extended and delivery dates will be estimated after all order documents have been received and payment terms have been approved . A current , approved credit application is required for N30 terms . To place an order, you must provide a purchase order or a signed Total Recreation Products , Inc. (hereafter described as TRP) quote , assigned to TRP. Neither general contractor nor subcontractor contracts can be accepted . Purchase documents that contain indemnity or hold harmless conditions cannot be accepted . Retainage is not permitted. The following must be received before your order can be processed : complete billing and shipping addresses, a contact name and phone#, and all color choices. Manufacturer's colors may vary from year to year. You are responsible for ensuring that any required submittal approvals are completed before placing your order for processing . TRP reserves the right to limit submittals to one copy. Shop drawings , bluelines , sepias , are not available . Closeout documents may be limited to TRP standard issue . If Sales Tax Exempt, a copy of your tax exemption form or resale certificate must accompany your order, or any applicable sales tax, will be added to your invoice . TRP cannot hold orders or store equipment. fm!iP.ment is invoiced when shiP.P-filh If a cash sale , your payment must be received in full before the order will be processed . Contractors must also provide copies of current, fully executed bid/performance/payment bonds , as applicable. Pricing shown does not include any charges for permits , bonding , prevailing wage , or additional insured certifications . Unless otherwise noted , any quantity of surfacing or playcurbs quoted has been calculated specifically for the equipment and layout shown . No additional surfacing or curbing is included , and no allowance has been made , for an unleveled , convoluted or larger site , or for a different layout. TRP is NOT responsible for any surface , curbing , border, or drain that is provided by others. Also please confirm that your area is adequate for the equipment that you are purchasing. Installation charg~,jf_gY.Q!fil!, are for a "standard" installation unless SP.ecifically noted to be otherwise . Installation charges are due u~~ Standard installations are based upon a soil work site , that is freely accessible by truck , (no fencing , tree/landscaping or utility obstacles , etc.), and level , (+/-1-2% maximum slope). An accessible water source must be available to the installer. Any site work that is not expressly described is excluded . Standard installation does not include any extra or additional machinery, drillers , etc., for rock excavation . If rock conditions are encountered, additional charges will apply. Standard installations generally reguire from 2-10 business days to comP.lete , deP.ending1rnon the amount and !Y.P.e of egldiP.ment , site conditions , weather, and the installer's schedule . Work may or may not be P.erformed in consecutive day.§., Playcurbs are staked in , not set in concrete . Engineered wood fiber and shredded rubber surfacings are spread , not compacted , rolled , or watered . Landscape timbers are not warranted . The Customer is responsible for locating and clearty marking all underground utilities in the installation area before any installation work can begin. The installer is not responsible for damages , repa irs , or discontinuance of business due to damaged utilities . If applicable , sprinkler system locates , re-working and repairs are excluded from installation charges . Installation of all products , (equipment, borders , fall surfacing and amenities) are as quoted and approved by acceptance of quotes and drawings. As a precautionary measure , work in progress areas will be taped off at the end of the workday. Pier spoils from installation shall be spread at site , site will be left rough grade. Trash disposal is the responsibility of the Customer. The installer is not responsible for any damages or re-work resulting from after hours events or activities during the work in progress period . Temporary fencing is only provided by specific request , and additional charges will apply. Collectively and/or individually, not the manufacturer, TRP, their representatives , nor the installation company shall be held liable for any damages resulting from misuse , vandalism , or neglect. Any deviations from approved and accepted placement of all items , along with additional work , over and above quoted items , will be chargeable to the customer. Once work is completed the customer will be notified if present at the job site , and all responsibility of any new work will be transferred to the customer. The customer is responsible for maintaining the integrity of completed installation work until all components have seated and/or cured (concrete footings , etc.). Your P.roject site must be comP.letely_P.reP.ared and ready to receive your equipment before any installation work begins . Acquisition of any and all permits is the sole responsibility of the customer. Additional charges may be billed for any ex1ra hours or trips needed as a result of the work site not being ready. Neither the installation contractor, TRP will NOT be responsible for delays caused by shortages , incorrect parts , weather conditions , other contractors , or lack of site readiness . !f.you are receiving_y.Q.!JLfilU!iR!I!fillLYOU are resP.onsible for unloading and acceJ21ing_Q_~!i~_ry from the freig~Rfil]y....5!.lli!...@RQr1ingJilly damagfil! freight or shortages on the freight bill at the time . You will also be resP.onsible for a comP.lete inventory....Qf.your received egldiP.ment and reP.orting any discreP.ancies to us immediately" Neither the freight company nor the manufacturer will resolve shipment discrepancies that are not reported immediately. Make sure that all items have been received before anyJyP.e of installation work is scheduled . The freight carrier will be instructed to call your designated contact 24 hours before delivery to arrange a delivery appointment. Once acceP.ted , orders can only be changed or canceled with the consent of TRP, and on terms that will indemnify them against loss . Changed or canceled orders are subject to a $100 .00 service charge . Add itionally, canceled orders are subject to a 25 % restocking fee , plus freight charges (to and from). Built-to--0rder egldiP.ment orders are non-cancelable. Changes to orders that have been shipped and invoiced are subject to the above $100 .00 service charge plus additional restocking/return charges of 25 %. Non-returnable items shall be charged at full invoice value . Any return transportation charges shall be for the Buyer's account. ReP.lacement P.arts are also subject to the cancellation/returns policy. Please carefully review any research information that has been sent to you and confirm that you are ordering the correct replacement parts for your equipment. This quotation is valid 30 fil!ys. After 30 day.i,_12lease request an u12dated quote. Prices may~ject to material and fuel surcharges at the time of shi12ment and are l!!hject to change without notice. Current 12rices will a121?.!Y. at the time of shi~ Acceptance of this quote indicates your agreement to TRP 'S cred it terms , which are net 30 days, FOB shipping with approved credit. Any deviations from this proposal may invalidate the quoted pricing and/or terms . Page 2 of 3 75 Total Recreation Products , Inc. 17802 Grant Road 1 Cypress , Texas 77429 Phone : 281-351-2402 Toll Free : 800-392-9909 Fax: 281-351-2493 TP-02077-22 Trophy Club Park -Shade 03/04/2022 Quote# 102436-01 -01 Payment terms : net 30 days for tax supported governmental agencies . A 1.5% per month finance charge will be imposed on all past due accounts . Equipment shall be invoiced separately from other services and shall be payable in advance of those services and project completion . Retainage not accepted . Please complete and return with your required form of payment: Acceptance of quotation: Accepted By (printed):--------------P.O. No :------------- Signature :-------------------Date :-------------- Title : __________________ _ Phone : ____________ _ Facsimilie : _________________ _ Purchase Amount: $10,768.97 Order Information: Bi ll To : Ship To : Company : Company : Attn : Attn : Address : Address : City , State, Zip: City, State, Zip : Contact : Contact : Email Address : Email Addre ss: _______________ _ Tel : Tel : Fax: Fax: For non-taxable purchases: Please also provide a copy of your Sales Tax Exemption Certificate or Resale Certificate. Page 3 of 3 76 Page 1 of 2 To: Mayor and Town Council From: Tony Jaramillo, Director of Parks and Recreation Matt Cox, Director of Community Development CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Road repair at Trophy Club Park Town Council Meeting, March 22, 2022 Agenda Item: Take appropriate action on approving the expenditure of $156,695 paid to Reynolds Asphalt for the asphalt road repair at Trophy Club Park through an Interlocal Purchasing Agreement (ILA) with the City of Grand Prairie (M. Cox). Strategic Link: Infrastructure and Development: Maintain and improve all Town Infrastructure. Background and Explanation: Staff is requesting authorization on approving the expenditure of $156,695 paid to Reynolds Asphalt to repair the Trophy Club Park main road. The Trophy Club Park Agreement with the Corps of Engineers requires the leasee to maintain the park and the park’s infrastructure in the condition found at the time the lease agreement was signed. The Town entered an Interlocal Purchasing Agreement with the City of Grand Prairie in which the subsequent estimate from Reynolds Asphalt satisfies all bidding requirements. A reimbursable grant was awarded to the Town by Texas Parks and Wildlife to repair the road and replace various pavilions within Trophy Club Park in the amount of $160,000 and the Trophy Club Park’s responsibility is $40,000. The cost breakdown is explained in the Financial Consideration section of this staff report. 77 Page 2 of 2 Financial Considerations: Budget Amendment #1 provides funding through the TPWD Grant for this project in the Trophy Club Park Fund. Of the estimated cost of $156,695, the grant will cover $125,356 and the Trophy Club Park Fund will cover $31,339.00. There is $97,500 in unspent capital expenses available in the Trophy Club Park Fund. Legal Review: Not applicable Board/Commission/ or Committee Recommendation: The Town Attorney reviewed and approved the documents associated with pertaining to this request. Staff Recommendation: Staff recommends approval of the road repair by exercising our Interlocal Agreement with the City of Grand Prairie and awarding the project to Reynolds Asphalt. Attachments: Reynolds Asphalt estimate Requisition Request Grand Prairies Interlocal Purchasing Agreement Agreement between the Town and Asphalt Reynolds 78 79 TOWN OF TROPHY CLUB Date : 3115/2022 Vendor (Name & Addres s) Reynolds Asphalt Co 8713 Airport Freeway Ste 100 North Richland Hills, TX 76180 Account Number PURCHASE REQUISITION F ORM Delivery Address I Trophy Wood Drive Trophy Club , TX 76262 Description 09-400-83700 Trophy Park Drive road repair Co-op info : Vendor Packet Activ e ? -Y e s Attachments -Reynolds Asphalt C o a s phalt estima te Budget Information -Purchase approved through T ex as Parks & W ildlife Grant Tony J aramillo R equested b y : Finance Approved by : PO N umber Department Parks and Rec . Project# _____ _ Quantity Unit Amount Total Amount 1 156,695.00 $ 156 ,695 .00 Total $ 156 ,695.00 App roved b y: The To w n of Trophy Club must have a completed Vendor Packet on file before a requisition can be accepted by the Fi nance Department. 80 RAC REYNOLDS ASPHALT CO . TOWN OF TROPHY CLUB Trophy Park Drive 1 HMAC T ype D Delivered more than 1500 tons 2 HMAC T voe D Delivered 500 to 1499 tons 3 HMAC T ype D Delivered less than 499 tons 4 HMAC T ype C Delivered more than 1500 tons 5 HMAC T vo e C Delivered 500 to 1499 tons 6 HMAC T ype C Delivered less than 499 tons 7 HMAC T ype B Delivered more than 1500 tons 8 HMAC T ype B Delivered 500 to 1499 tons 9 HMAC T ype B Delivered less than 499 tons 10 Additional Mileage Hauled beyond the first 10 from bidders plant Items# 1-9 Per Ton Per Mile **NOTE: $0 .90 per mile @ 12 miles•• 11 Move In/Out Charge for pro jects under 499 tons 12 Thoroughfare Traffic Control Charges Per street 13 Manhole Ring Riser Ad justment/Placement Rin g 14 Valve Rin Q Riser Ad justment/Placement RinQ 15 Base Repa ir 16 Flex Base furnish and install 17 8" Cement Stab Existin g -more than 3000 s y 18 8" Cement Stab Existinq -1400 to 2999 s y 19 8" Cement Stab Existin g -less than 1399 sy 20 Hauling Excessive Material more than 101 c y 21 Haulin g Excessive Material 51 to 100 c y 22 Haulin g Excessive Material less than 50 c y 23 WedQeMill 24 Full Depth MillinQ 0-4" 25 Full Depth M illing Each Additional Inch 26 Backfill Shoulders 27 8" Pulverization 28 Petromat less than 2500 SY 29 Petromat 2500 -4999 SY 30 Petromat more 5000 SY TONS TONS TONS TONS TONS TONS TONS TONS TONS EACH PER TON MILE EACH EACH EACH EACH SY TONS SY SY SY CY CY CY LF SY SY LF SY SY SY SY s $ $ $ $ s s s $ s s s s $ s s s $ $ s $ $ $ s s $ $ $ $ s UNIT PRICE BID 91.60 95.20 112.00 89 .00 94 .50 111.80 86 .50 9050 107.50 10 .80 1,800.00 3,600 .00 300.00 200 .00 76 .50 43.50 9.80 11.30 19.70 33.40 37.40 47 .60 5.50 5.30 0.75 1.70 3.00 5.40 3.70 3.00 TOTAL FOR PAGE TOTAL QUANTITY 1,370.00 1,370.00 150.00 TOTAL COMPLETED TO DATE $ - $ 130,424.00 $ - $ - $ - $ - $ - $ - $ - $ 14,796.00 $ - $ - $ - $ - $ 11,475.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 156,695.00 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 Page 1 of 2 To: Mayor and Town Council From: Matt Cox, Director of CD CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Case SUP-22-001 Town Council Meeting, March 22, 2022 Agenda Item: Case SUP-22-001 (Social Oak Lounge Alcohol On-Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on-premises consumption in conjunction with a restaurant use, located at 2230 E. Highway 114 #550. b. Take appropriate action regarding Ordinance 2022-06 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for on-premises consumption in conjunction with a restaurant use, located at 2230 E. Highway 114 #550. Strategic Link: Infrastructure & Development – Foster a business-friendly environment. Background and Explanation: Social Oak Lounge is requesting approval of a Specific Use Permit (SUP) for alcoholic beverage sales for on-premises consumption in conjunction with a restaurant use according to Section 14.02.252 of the Town’s Code of Ordinances. The property’s zoning of Planned Development No. 30 (PD-30) does not restrict the sales of alcoholic beverages beyond the regulations of Town Code and State Law. As shown in Exhibit C, Social Oak Lounge is applying to the Texas Alcoholic Beverage Commission (TABC) to obtain a Mixed Beverage Restaurant Permit (RM) and a Mixed Beverage Late Hours Permit (LB) which will allow for the sale and consumption of wine, beer, and liquor on the premises and during late hours (12 midnight – 2 AM). Town Code does not restrict hours of operation beyond TABC’s regulations. Section 14.02.252(b) of the Code of Ordinances states that no alcoholic beverages may be sold within 300 feet of a church, public school or private school, or public hospital. Subsection (g) 31 Page 2 of 2 describes the methods of measurement as front door to front door and along street front property lines when measuring to churches and public hospitals, and in a direct line from nearest property line to property line when measuring to public schools and private schools. Social Oak Lounge complies 127 Page 2 of 2 with Town and State requirements, as the closest church (Fellowship United Methodist Church) is approximately 1,205 feet away, the closest public school (Lakeview Elementary School) is approximately 1.25 miles away, the closest private school (Primrose School of Westlake at Entrada) is approximately 3,400 feet away, and the closest public hospital (Methodist Southlake Hospital) is approximately 4.25 miles away. The nearby Baylor Scott & White Medical Center – Trophy Club is a private hospital so there are no separation requirements. Parking needs have been addressed by the required on-site parking spaces. The Chief of Police has reviewed this application, as required by Code, and does not have any objections. Notice of a public hearing was distributed as required by State Law. To date, staff has not received any inquiries. Financial Considerations: Not applicable. Legal Review: The Town Attorney has reviewed this item and has no objection. Planning & Zoning Commission Recommendation: The P&Z Commission considered this item on March 10, 2022. The Commission unanimously recommended approval of the SUP. Staff Recommendation: Staff recommends approval of the Specific Use Permit. Attachments: Exhibit A – Application Exhibit B – Location Map Exhibit C – TABC Application Exhibit D – Ordinance 2022-06 128 PD-30129 N 130 131 132 133 134 135 136 137 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2022-06 P&Z AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING A SPECIFIC USE PERMIT FOR ALCOHOLIC BEVERAGE SALES FOR ON-PREMISES CONSUMPTION IN CONJUNCTION WITH A RESTAURANT USE OPERATED BY SOCIAL OAK LOUNGE, LOCATED ON LOT 1, BLOCK A OF TROPHY CLUB TOWN CENTER ADDITION, WITHIN PD PLANNED DEVELOPMENT NO. 30; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the applicant seeks to sell alcoholic beverages, including beer, wine, and liquor for on-premises consumption in conjunction with a restaurant use operated by Social Oak Lounge, located at 2230 E Highway 113 #550; and WHEREAS, all legal requirements and conditions were complied with, and after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning & Zoning Commission of the Town has recommended to the Town Council the adoption of this Ordinance; and WHEREAS, after due deliberations and consideration of the recommendation of the Planning & Zoning Commission and the information and other materials received at the public hearing, the Town Council has concluded that the adoption of this Ordinance is in the best interests of the Town of Trophy Club, Texas and of the public health, safety, and welfare. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. 138 ORD 2021-08 P&Z Page 2 of 4 SECTION 2. APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION In all respects the Land shall be subject to the applicable regulations contained in the Comprehensive Zoning Ordinance and all other applicable and pertinent ordinances and regulations of the Town, including without limitation regulations governing PD Planned Development No. 30 and all amendments thereto. The Specific Use Permit granted by this Ordinance shall control in cases of conflict between this Ordinance and/or PD Planned Development No. 30 and/or the Comprehensive Zoning Ordinance. The Specific Use Permit granted hereby shall discontinue if the use for which this Specific Use Permit is granted ceases to be operated at the permitted location for a minimum period of six (6) continuous months. Further, this Specific Use Permit shall be subject to revocation in accordance with the Town of Trophy Club Code of Ordinances. SECTION 3. SAVINGS AND REPEALER This Ordinance shall be cumulative of all other ordinances of the Town affecting the regulation of land and zoning and shall not repeal any of the provisions of those ordinances except in those instances where the provisions of those Ordinances are in direct conflict with the provisions of this Ordinance whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY The sections, paragraphs, sentences, phrases, clauses and words of this Ordinance are severable, and if any section, paragraph, sentence, phrase, clause or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares that it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon 139 ORD 2021-08 P&Z Page 3 of 4 conviction, in an amount not less than One Dollar ($1.00) nor more than Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. The penalty provided by this section shall be cumulative of all other penalties allowed by law, including without limitation, civil remedies available for enforcement of this Ordinance. SECTION 6. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 7. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by filing this Ordinance in the ordinance records of the Town. SECTION 8. EFFECTIVE DATE This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. 140 ORD 2021-08 P&Z Page 4 of 4 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 22nd day of March 2022. Alicia Fleury, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, TRMC/CMC/MMC Town Secretary/RMO Town of Trophy Club, Texas APPROVED AS TO FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas 141 Page 1 of 2 To: Mayor and Town Council From: Matt Cox, Director of CD CC: Wade Carroll, Acting Town Manager Leticia Vacek, Town Secretary/RMO Re: Case SUP-22-002 Town Council Meeting, March 22, 2022 Agenda Item: Case SUP-22-002 (Social Oak Lounge Alcohol Off-Premises) a. Conduct a Public Hearing regarding a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off-premises consumption to be sold from Social Oak Lounge, located at 2230 E Highway 114 #550. b. Take appropriate action regarding Ordinance 2022-07 for a request made by Social Oak Lounge for a Specific Use Permit for alcoholic beverage sales for off-premises consumption to be sold from the Social Oak Lounge, located at 2230 E Highway 114 #550. Strategic Link: Infrastructure & Development – Foster a business-friendly environment. Background and Explanation: Social Oak Lounge is requesting approval of a Specific Use Permit (SUP) for alcoholic beverage sales for off-premises consumption so that they may be able to sell wine and beer in the Social Oak Lounge. As shown in Exhibit C, Social Oak Lounge is applying to the Texas Alcoholic Beverage Commission (TABC) to obtain a Wine and Beer Retailer’s Off-Premise Permit (BG) which will allow for the sale of unopened wine and beer to be consumed off-premises. The property’s zoning of Planned Development No. 30 (PD-30) does not restrict the sales of alcoholic beverages beyond the regulations of Town Code and State Law. 141 Page 2 of 2 Section 14.02.252(b) of the Code of Ordinances states that no alcoholic beverages may be sold within 300 feet of a church, public school or private school, or public hospital. Subsection (g) describes the methods of measurement as front door to front door and along street front property lines when measuring to churches and public hospitals, and in a direct line from nearest property line to property line when measuring to public schools and private schools. Social Oak Lounge complies with Town and State requirements, as the closest church 142 Page 2 of 2 (Fellowship United Methodist Church) is approximately 1,205 feet away, the closest public school (Lakeview Elementary School) is approximately 1.25 miles away, the closest private school (Primrose School of Westlake at Entrada) is approximately 3,400 feet away, and the closest public hospital (Methodist Southlake Hospital) is approximately 4.25 miles away. The nearby Baylor Scott & White Medical Center – Trophy Club is a private hospital so there are no separation requirements. Parking needs have been addressed by the required on-site parking spaces. The Chief of Police has reviewed this application, as required by Code, and does not have any objections. Notice of a public hearing was distributed as required by State Law. To date, staff has not received any inquiries. Financial Considerations: Not applicable. Legal Review: The Town Attorney has reviewed this item and has no objection. Planning & Zoning Commission Recommendation: The P&Z Commission considered this item on March 10, 2022. The Commission unanimously recommended approval of the SUP. Staff Recommendation: Staff recommends approval of the Specific Use Permit. Attachments: Exhibit A – Application Exhibit B – Location Map Exhibit C – TABC Application Exhibit D – Ordinance 2202-07 143 PD-30144 N 145 146 147 148 149 150 151 152 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2022-07 P&Z AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING A SPECIFIC USE PERMIT FOR ALCOHOLIC BEVERAGE SALES FOR OFF-PREMISES CONSUMPTION IN CONJUNCTION WITH A RESTAURANT USE OPERATED BY SOCIAL OAK LOUNGE, LOCATED ON LOT 1, BLOCK A OF TROPHY CLUB TOWN CENTER ADDITION, WITHIN PD PLANNED DEVELOPMENT NO. 30; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the applicant seeks to sell alcoholic beverages, including beer, wine, and liquor for off-premises consumption in conjunction with a restaurant use operated by Social Oak Lounge, located at 2230 E Highway 113 #550; and WHEREAS, all legal requirements and conditions were complied with, and after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning & Zoning Commission of the Town has recommended to the Town Council the adoption of this Ordinance; and WHEREAS, after due deliberations and consideration of the recommendation of the Planning & Zoning Commission and the information and other materials received at the public hearing, the Town Council has concluded that the adoption of this Ordinance is in the best interests of the Town of Trophy Club, Texas and of the public health, safety, and welfare. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. 153 ORD 2021-08 P&Z Page 2 of 4 SECTION 2. APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION In all respects the Land shall be subject to the applicable regulations contained in the Comprehensive Zoning Ordinance and all other applicable and pertinent ordinances and regulations of the Town, including without limitation regulations governing PD Planned Development No. 30 and all amendments thereto. The Specific Use Permit granted by this Ordinance shall control in cases of conflict between this Ordinance and/or PD Planned Development No. 30 and/or the Comprehensive Zoning Ordinance. The Specific Use Permit granted hereby shall discontinue if the use for which this Specific Use Permit is granted ceases to be operated at the permitted location for a minimum period of six (6) continuous months. Further, this Specific Use Permit shall be subject to revocation in accordance with the Town of Trophy Club Code of Ordinances. SECTION 3. SAVINGS AND REPEALER This Ordinance shall be cumulative of all other ordinances of the Town affecting the regulation of land and zoning and shall not repeal any of the provisions of those ordinances except in those instances where the provisions of those Ordinances are in direct conflict with the provisions of this Ordinance whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY The sections, paragraphs, sentences, phrases, clauses and words of this Ordinance are severable, and if any section, paragraph, sentence, phrase, clause or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares that it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon 154 ORD 2021-08 P&Z Page 3 of 4 conviction, in an amount not less than One Dollar ($1.00) nor more than Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. The penalty provided by this section shall be cumulative of all other penalties allowed by law, including without limitation, civil remedies available for enforcement of this Ordinance. SECTION 6. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 7. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by filing this Ordinance in the ordinance records of the Town. SECTION 8. EFFECTIVE DATE This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. 155 ORD 2021-08 P&Z Page 4 of 4 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 22nd day of March 2022. Alicia Fleury, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, TRMC/CMC/MMC Town Secretary/RMO Town of Trophy Club, Texas APPROVED AS TO FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas 156 Page 1 of 4 To: Mayor and Town Council From: Matt Cox, Director of Community Development CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary/RMO Re: Case PD-22-001 Town Council Meeting, March 22, 2022 Agenda Item: Case PD-22-001 (54 & 56 Meadowbrook Lane) a. Conduct a Public Hearing regarding a request made by Steven F Udvar-Hazy Tr Hazy Family Community Property Trust to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition Lots 1 and 2, Block A, Denton County, Trophy Club, Texas, from R-12 Single Family Residential District to a PD, Planned Development District R-12 to allow for fencing along the front and side of the properties. b. Take appropriate action regarding Ordinance 2022-08 for a request made by Steven F Udvar-Hazy Tr Hazy Family Community Property Trust to rezone approximately 1.0055 acres of land, 54 and 56 Meadowbrook Lane, of the Last Acre Addition Lots 1 and 2, Block A, Denton County, Trophy Club, Texas, from R-12 Single Family Residential District to a PD, Planned Development District R-12 to allow for fencing along the front and side of the properties. Strategic Link: Nature & Beautification- Improve the aesthetic and recreational value of the Town. Background and Explanation: The property owner, Mr. Hazy, is requesting approval of a Planned Development District to allow for fencing on 54 and 56 Meadowbrook Lane within the front setbacks and along the side yard setbacks. As presented, the imagery illustrates the proposed screening fence/wall will be located 25 feet from the curb line along Meadowbrook Lane (east/west orientation) and along the property line along Meadowbrook Lane (north/south orientation). Exhibit D includes nine (9) renderings of the proposed wall/fencing for the properties. 157 Page 2 of 4 Imagery provided by applicant The Trophy Club Zoning Ordinance provides regulations for fencing, retaining walls and screening (Sec. 14.02.351) as follows: (1) Front elevation. All fences shall be located a minimum of ten (10) feet behind the front elevation of the primary structure. (2) Side yard adjacent to side street. Side yard fences shall be located within the side yard building setback and shall not extend beyond the building line of the side yard adjacent to a side street. The Zoning Ordinance defines a fence as: Fence. Any wall or structure more than three feet (3') in height constructed or placed for the purpose of enclosing, screening, restricting access, or decorating any real property, building or structure. Additionally, the Zoning Ordinance provides for “Projections into required yards” (Sec. 14.02.256): Certain architectural features, fences, walls, and hedges may project into or be located in required yards as follows: (5) Fences and walls adjacent to streets and located on corner lots shall be located on the setback line as established by the front and side yard regulations of the district. The ordinance is inconsistent, and the proposed PD will provide for an accurate representation of the desired fence/wall location. The proposed PD will allow for the wall to be constructed: Along the north/south property line of 56 Meadowbrook Lane (corner lot); and Within the front building setback, no closer than 12 feet to the front property boundary for 54 and 56 Meadowbrook Lane. Approximately 25 feet from the curb line. Measurements based on property boundaries are fixed and recommended as a reference point. The 158 Page 3 of 4 wall/fence along the north/south property boundary may continue at a distance desired but no further than the mutual property corner of 54 Meadowbrook Lane, 52 Meadowbrook Lane, and 40 Rockwood Drive. Wall survey provided by applicant 159 Page 4 of 4 Notice of the public hearing was distributed as required by State Law. At the time of agenda packet publication staff had received a few inquiries for the proposed details. Staff received one email (Exhibit E) of strong support from a resident within the notification area and the applicant provided a statement of support from six adjacent neighbors (Exhibit F). Five of those neighbors are property owners within the notification boundary. In summary the proposed PD application provides for a handsomely landscaped and visually appealing open fencing screening wall concept that will provide the desired security of the applicant. Financial Considerations: Not applicable. Legal Review: The Town Attorney is reviewing this item. Planning & Zoning Commission Recommendation: The P&Z Commission considered this item on March 10, 2022. The Commission recommended approval with a 6-0 vote as presented with staff’s recommendations. Staff Recommendation: Staff recommends approval of the Planned Development District request for: 1. The fence/wall to be constructed along the north/south property line of 56 Meadowbrook Lane (corner lot); 2. The fence/wall to be constructed within the front building setback, no closer than 12 feet to the front property boundary for 54 and 56 Meadowbrook Lane, approximately 25 feet from the curb line. The north/south property boundary fence/wall may continue at a distance desired by the applicant/landowner but will not extend past the mutual property corner of 54 Meadowbrook Lane, 52 Meadowbrook Lane, and 40 Rockwood Drive; 3. Owner(s) shall provide approved accessibility devices for fire/emergency services at the front gates, if required; and 4. Owner of 56 Meadowbrook Lane (corner lot) shall provide evidence through a scaled drawing demonstrating the fencing/wall will not encroach within the “sight distance zone” per the Zoning Ordinance, Sec. 14.02.460. The drawing is part of the building permit application requirements. Attachments: Ordinance 2022-08 P&Z Exhibit A – Legal Description Exhibit B – Concept Plan-Screening Fence/Wall Plan Exhibit C – Development Standards Exhibit D – Imagery Exhibit E – Email of support from adjacent property owner Exhibit F – Statement of support from neighboring property owners Exhibit G – Area of notice for public hearing 160 Page 1 of 15 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2022-08 P&Z AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING ORDINANCE NO. 2000-06 P&Z OF THE TOWN, THE SAME BEING THE COMPREHENSIVE ZONING ORDINANCE, AND AMENDING THE OFFICIAL ZONING MAP OF THE TOWN BY CHANGING THE ZONING ON A CERTAIN "TRACT OF LAND DESCRIBED AS LOTS 1 AND 2, BLOCK A, OF THE LAST ACRE ADDITION, A 1.0055 ACRE TRACT OF LAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF MEADOWBROOK LANE AND MEADOWBROOK LANE, WEST OF ROCKWOOD DRIVE AND SOUTH OF E HILLSIDE PLACE AND CRESTWOOD DRIVE, AND BEING MORE PARTICULARLY DESCRIBED IN EXHIBIT “A", ATTACHED HERETO AND INCORPORATED HEREIN, FROM ITS CURRENT ZONING OF “R-12”, R-12 SINGLE FAMILY RESIDENTIAL DISTRICT”, TO PD PLANNED DEVELOPMENT NO. 36, HAZY 54 AND 56 MEADOWBROOK LANE; PROVIDING “THAT SUCH TRACT OF LAND SHALL BE USED IN ACCORDANCE WITH THE REQUIREMENTS OF THE COMPREHENSIVE ZONING ORDINANCE AND ALL OTHER APPLICABLE ORDINANCES OF THE TOWN; PROVIDING THAT THE ZONING MAP SHALL REFLECT "THE PD PLANNED DEVELOPMENT NO. 36 ZONING DISTRICT FOR THE SUBJECT PROPERTY; PROVIDING A CONCEPT PLAN- SCREENING FENCE/WALL PLAN; PROVIDING DEVELOPMENT STANDARDS; PROVIDING IMAGERY; PROVIDING A CUMULATIVE CLAUSE; PROVIDING FOR SAVINGS; PROVIDING SEVERABILITY; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town Council of the Town of Trophy Club, Texas (the “Town”), is authorized and empowered by law, in accordance with Chapter 212 of the Texas Local Government Code, to regulate the zoning of land and property development within the Town; WHEREAS, the owner of the tract of land (the “Land”), collectively described as Lots 1 and 2, Block A of the Last Acre Addition, a 1.0055 acre tract of land currently zoned “R-12” R-12 Single Family Residential District, such Land being more specifically described in Exhibit “A" attached hereto and incorporated herein, filed an application with the Town Planning and Zoning Commission requesting a change in zoning of the Land into PD Planned Development No.36. Such application further requested an amendment to the official Zoning District Map of the Town in accordance with Ordinance No. 2000-06 P&Z of the Town (the “Comprehensive 161 Page 2 of 15 Zoning Ordinance”); and WHEREAS, all legal notices, requirements and conditions having been complied with, the case to rezone the Land came before the Planning and Zoning Commission; and WHEREAS, after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning and Zoning Commission of the Town has recommended to the Town Council the adoption of the amendments to Comprehensive Zoning Ordinance No. 2000-06 P&Z as set forth in this Ordinance; and WHEREAS, after complying with all legal notices, requirements, and conditions, a public hearing was held before Town Council at which the Town Council considered, among other things, the character of the land and its suitability for particular uses, with a view of encouraging the most appropriate use of land in the Town, and does hereby find that the rezoning approved hereby accomplishes such objectives; and WHEREAS, the Town Council has determined that there is a necessity and need for the change in zoning and that the proposed change is consistent with the Comprehensive Land Use Plan. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, "TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. FINDINGS After due deliberations and consideration of the recommendation of the Planning and Zoning Commission and the information and other materials received at the public hearing, the Town Council has concluded that the adoption of this Ordinance is in the best interests of the Town of Trophy Club, Texas, and of the public health, safety and welfare. SECTION 3. REZONING Ordinance No. 2000-06 P&Z of the Town of Trophy Club, Texas, the same being the Town's Comprehensive Zoning Ordinance, is hereby amended in the following particulars, and all other articles, chapters, sections, paragraphs, 162 Page 3 of 15 sentences, phrases and words are not amended but are hereby ratified and affirmed: A. The zoning on the Land, more particularly described in Exhibit “A”, attached hereto and incorporated herein, is hereby changed from “R-12” R-12 Single Family Residential District to PD Planned Development District No. 36, consisting of approximately 1.0055 acres of land, for use in accordance with the requirements of this Ordinance and all other applicable ordinances, rules, and regulations of the Town. Requirements of this Ordinance are more specifically described and set forth in Exhibits “B”, “C”, and “D”, which are attached hereto and incorporated herein for all purposes. In the event of any ambiguities or conflicts between the written word in the Development Standards and the illustrations provided in the Exhibits to this Ordinance, the Exhibits shall control. 1.Concept Plan-Screening Fence/Wall Plan. A conceptual screening fence/wall plan for the Land, and all parts thereof, is attached hereto as Exhibit "B”, “Concept Plan-Screening Fence/Wall Plan” and incorporated herein as if copied in its entirety. Such Concept Plan shall be adhered to in carrying out the development of the Land in accordance with this Ordinance, and compliance with each and every part of such plan shall constitute a condition precedent to the issuance of any building permit for the Land in this PD Planned Development District. 2.Development Standards. The development standards for this PD Planned Development are attached hereto as Exhibit “C", “Development Standards”, and are incorporated herein as if copied in their entirety. Such standards and regulations include, but are not limited to, a general purpose; base zoning district regulations; locations of the screening fence/wall; accessibility for fire/emergency services; and demonstration through building permit application plan requirement that the screening fence/wall location is not within the sign distance zone. 3.Imagery. The imagery for the PD Planned Development is attached hereto as Exhibit “D”, “Imagery:”, and are incorporated herein as if copied in their entirety. Such imagery includes, but is not limited to, the general character, materials, and location of the screening fence/wall. SECTION 4. APPLICABLE REGULATIONS In all respects, the Land shall be subject to the applicable regulations contained in the Comprehensive Zoning Ordinance and all other applicable and pertinent ordinances and regulations of the Town; provided however, that in the event of a conflict between the regulations in this Ordinance and the regulations in another applicable ordinance or regulation of the Town, the regulations in this Ordinance shall control. 163 Page 4 of 15 SECTION 5. ZONING MAP The Community Development Director is hereby directed to mark and indicate on the official Zoning District Map of the Town the zoning change herein made. SECTION 6. CUMULATIVE “That this Ordinance shall be cumulative of all other Ordinances and shall not repeal any of the provisions of such Ordinances except for those instances where there are direct conflicts with the provisions of this Ordinance SECTION 7. SAVINGS All rights and remedies of the Town of Trophy Club, Texas, are expressly saved as to any and all violations of the provisions of any other Ordinance affecting regulations governing and regulating the zoning, platting, and subdivision of land which have secured at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such Ordinances same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 8. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 9. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon conviction, in an amount not more than Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. 164 Page 5 of 15 SECTION 10. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 11. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with state law and the Town’s Home Rule Charter. SECTION 12. EFFECTIVE DATE. This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 22nd day of March, 2022. Alicia Fleury, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas 165 Page 6 of 15 EXHIBIT “A” LEGAL DESCRIPTION Lot 1, Block A Lot 2, Block A Lost Acre Addition Town of Trophy Club, Denton County, Texas 166 Page 7 of 15 EXHIBIT “B” CONCEPT PLAN – SCREENING FENCE/WALL PLAN 167 Page 8 of 15 EXHIBIT “C” DEVELOPMENT STANDARDS The development of the Land described in Exhibit “A” - Legal Description, a copy of which is attached hereto and incorporated herein, consisting of approximately 1.0055 acres of land shall be in accordance with Exhibit “B” - Concept Plan - Screening Fence/Wall Plan and Exhibit “D” – Imagery for the development, a copy of which is attached hereto and incorporated herein, all other Exhibits attached to or incorporated herein, the Comprehensive Zoning Ordinance, all other applicable ordinances and regulations of the Town of Trophy Club, and the following Development Standards, conditions and requirements. If any regulation is silent in this document, the zoning ordinance shall rule. A.Purpose: The Planned Development is designed to accommodate a screening fence/wall within the front yard building setback and side yard building setback. 1.Base Zoning District: The property as described in Exhibit “A”, shall be developed in accordance with the R-12 Single Family Residential District of the Comprehensive Zoning Ordinance unless outlined herein. 2.Additional Development Standards: a.The screening fence/wall shall be constructed along the north/south property line of 56 Meadowbrook Lane (corner lot); b.The screening fence/wall to be constructed within the front building setback, shall be no closer than 12 feet to the front property boundary for 54 and 56 Meadowbrook Lane, approximately 25 feet from the curb line. The north/south property boundary fence/wall may continue at a distance desired by the applicant/landowner but will not extend past the mutual property corner of 54 Meadowbrook Lane, 52 Meadowbrook Lane, and 40 Rockbrook Drive; c.Owner(s) shall provide approved accessibility devices for fire/emergency services at the front gates, if required; and d.Owner of 56 Meadowview Lane (corner lot) shall provide evidence through a scaled drawing demonstrating the screening fenc/wall does not encroach within the “sight distance zone” per the Zoning Ordinance, Sec. 14.02.460. The drawing is part of the building permit application requirements. 168 Page 9 of 15 EXHIBIT “D” IMAGERY Plan View 169 Page 10 of 15 Perspective View from Intersection of Meadowbrook Lane Front Elevation of 56 Meadowbrook Lane Front Elevation of 54 Meadowbrook Lane 170 Page 11 of 15 Bird’s Eye Perspective of 54 and 56 Meadowbrook Lane 171 1 Helen-Eve Beadle Subject:FW: 54-56 Meadowbrook From: Kim Stevens Sent: Thursday, March 10, 2022 9:22 AM To: Matt Cox <mcox@trophyclub.org> Cc: Steven Hazy Subject: 54-56 Meadowbrook Hi Matt, I hope all is well. I am emailing again to confirm my full support of everything that the Hazy family is planning for their properties on Meadowbrook. I am fully supportive of the fencing, creating a PUD for the 2 lots, and any other improvements planned. Everything they are planning to do will certainly increase the value and appearance of the street. Unfortunately, I cannot attend the meeting tonight due to my 7th grader's baseball game, so please make my support known to the board. My dad is aware of my support. Thank you! -- Attention: Please note any correspondence, such as e-mail or letters, sent to Town staff or officials may become a public record and made available for public/media review. -- Public Officials: A "reply to all" of this e-mail may lead to violations of the Texas Open Meetings Act. Please reply only to the sender. [020415] 172 173 174 Page 1 of 2 To: Mayor and Town Council From: Mike Erwin, Finance Manager CC: Wade Carroll, Town Manager Leticia Vacek, Town Secretary Re: Fiscal Year 2021 Audit Town Council Meeting, March 22, 2022 Agenda Item: Consider and take appropriate action regarding the acceptance and authorization to distribute the Annual Comprehensive Financial Report after final review by Town Council and Management (M. Erwin). Strategic Link: Administrative & Financial Services – Exercise fiscal discipline in all Town operations. Background and Explanation: The Town’s financial records have been prepared and audited by BKD, LLC, Certified Public Accountants, as required by the Town Charter. This Annual Report has been prepared based upon those audited records. The goal of the independent audit is to provide reasonable assurance that the financial statements of the Town are presented fairly, in all material respects, for the fiscal year ended September 30, 2021. This independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. This year the document presented to Council is in draft form and will be approved after final review by Town Council, Town Management and BKD’s national office. Distribution requirements are March 31st for this fiscal year report. Financial Considerations: The independent auditor states, “The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering unmodified opinions that the Town’s financial statements for the fiscal year ended September 30, 2021, are fairly presented in conformity with GAAP.” Legal Review: Not applicable. 175 Page 2 of 2 Board/Commission/ or Committee Recommendation: Not applicable. Staff Recommendation: Staff recommends acceptance and authorization to distribute the Annual Comprehensive Financial Report after final review by Town Council and Management. Attachment(s): Draft - Town of Trophy Club 2021 Annual Comprehensive Financial Report Town Council Approval: Mayor Alicia L. Fleury or designee 176 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT PREPARED BY Mike Erwin Finance Manager PRESENTED BY Wade Carroll Town Manager DRAFT - 3.18.22 177 Town of Trophy Club, Texas Annual Comprehensive Financial Report Fiscal Year Ended September 30, 2021 Prepared by Town of Trophy Club Wade Carroll, Town Manager Mike Erwin, Finance Manager DRAFT - 3.18.22 178 DRAFT - 3.18.22 179 Town of Trophy Club, Texas September 30, 2021 Contents Introductory Section (Unaudited) Letter of Transmittal ......................................................................................................................... i-v Organizational Chart ......................................................................................................................... vi Elected Officials and Administrative Officers ................................................................................. vii GFOA Certificate of Achievement .................................................................................................. viii Financial Section Independent Auditor’s Report ............................................................................................... 1 Management’s Discussion and Analysis ............................................................................. 4 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ................................................................................................................. 15 Statement of Activities ..................................................................................................................... 16 Fund Financial Statements Balance Sheet – Governmental Funds .............................................................................................. 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ...... 19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ...... 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities .......................................... 21 Statement of Net Position – Proprietary Funds ................................................................................ 22 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ........... 23 Statement of Cash Flows – Proprietary Funds ................................................................................. 24 Notes to Financial Statements .......................................................................................................... 25 DRAFT - 3.18.22 180 Town of Trophy Club, Texas September 30, 2021 Required Supplementary Information (Unaudited) Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ............................................................................................................................... 67 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – PID No. 1 Fund ........................................................................................................................... 68 Schedule of Changes in the Town’s Net Pension Liability and Related Ratios - Texas Municipal Retirement System ........................................................................................... 69 Schedule of Employer Contributions – Texas Municipal Retirement System ................................. 70 Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios – Texas Municipal Retirement System – Supplemental Death Benefits Fund ............................... 71 Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios – Retiree Health Care Plan ............................................................................................................. 72 Combining and Individual Fund Financial Statements and Schedules (Unaudited) Combining Balance Sheet – Nonmajor Governmental Funds .......................................................... 73 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds. .................................................................................................................... 74 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Hotel Occupancy Tax .................................................................................................................. 75 Street Maintenance Sales Tax ..................................................................................................... 76 Court Technology ........................................................................................................................ 77 Court Security ............................................................................................................................. 78 Recreation Programs ................................................................................................................... 79 Park Land Dedication .................................................................................................................. 80 Tax Increment Financing Zone No. 1 ......................................................................................... 81 Crime Control and Prevention District ........................................................................................ 82 Balance Sheet – Discretely Presented Component Unit ................................................................... 83 Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Position – Discretely Presented Component Unit .......................................................................................... 84 Statement of Revenues, Expenditures, and Changes in Fund Balance – Discretely Presented Component Unit ........................................................................................................................... 85 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement of Activities – Discretely Presented Component Unit ..... 86 DRAFT - 3.18.22 181 Town of Trophy Club, Texas September 30, 2021 Statistical Section (Unaudited) Financial Trends Net Position by Component .............................................................................................................. 87 Changes in Net Position ................................................................................................................... 88 Fund Balances of Governmental Funds ............................................................................................ 90 Changes in Fund Balances of Governmental Funds ......................................................................... 91 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property .................................................. 92 Direct and Overlapping Property Tax Rates ..................................................................................... 93 Principal Property Taxpayers ........................................................................................................... 94 Property Tax Levies and Collections ................................................................................................ 95 Debt Capacity Ratios of Outstanding Debt by Type ................................................................................................ 96 Ratios of Net General Bonded Debt Outstanding ............................................................................. 97 Direct and Overlapping Governmental Activities Debt ................................................................... 98 Pledged-Revenue Coverage .............................................................................................................. 99 Demographic and Economic Information Demographic and Economic Statistics ........................................................................................... 100 Principal Employers ....................................................................................................................... 101 Operating Information Full-Time Equivalent City Government Employees by Function/Program ................................... 102 Operating Indicators by Function/Program .................................................................................... 103 DRAFT - 3.18.22 182 Introductory Section (Unaudited) DRAFT - 3.18.22 183 DRAFT - 3.18.22 184 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, TX 76262 Phone (682) 237-2900 Fax (682) 237-2996 i March __, 2022 To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Trophy Club, Texas The Town’s Finance Department has a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) which were audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. The Annual Comprehensive Financial Report (ACFR) for the Town of Trophy Club, Texas for the fiscal year ended September 30, 2021 is hereby issued. This report consists of management’s representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making the representations, management of the Town has established a comprehensive internal control framework that is designed both to protect the Town’s assets from loss, theft, or misuse and to compile sufficient and reliable information for the preparation of the Town’s financial statements in conformity with GAAP. Internal controls should not outweigh their benefits; therefore, the Town’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements are free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town’s financial records have been audited by BKD, LLP, Certified Public Accountants, as required by the Town Charter. This ACFR has been prepared based upon those audited records. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town are presented fairly, in all material respects, for the fiscal year ended September 30, 2021. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering unmodified opinions that the Town’s financial statements for the fiscal year ended September 30, 2021, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditor. DRAFT - 3.18.22 185 ii Profile of the Town The Town of Trophy Club, Texas incorporated in 1985 as Texas’ first premiere master planned community, is located in the North Central portion of Texas. This area of the State has proven to be one of the top growth areas in Texas and the United States. The Town currently occupies a land area of just over 4 square miles and serves a growing population of approximately 12,541 The Town is empowered to levy a property tax on real property located within its boundaries. The Town has a median household income of $147,477 and a median housing value of $485,000. Trophy Club has operated as a Home Rule municipality utilizing the Council-Manager form of government since 2004. With the Charter Amendments passed at the May 11, 2013 election policy-making and legislative authority are vested in the Town Council consisting of the Mayor and six other council members. The Town Council is responsible for, among other things, passing ordinances, adopting the budget, appointing boards and committees, and hiring the Town Manager, Town Secretary, Municipal Judge, and Town Attorney. The Town Council is elected on a non-partisan basis. With the Charter Amendments passed at the May 9, 2009 election, Council members are elected from the Town at-large- by-place in the manner, for a term of three (3) years or until their successors have been elected and take office. Each Council member shall be elected to and occupy a place on the Council, such Places being numbered (e.g., Place 1, Place 2, Place 3, etc.). No person shall serve as Mayor or Council member for successive elected full terms totaling more than six years. The Town Manager is responsible for carrying out the policies and ordinances of the Town Council, overseeing the day-to-day operations of the government and for appointing the heads of the various Town departments. The Town of Trophy Club provides a full range of municipal services including general government, public safety, streets, parks and recreation, planning and zoning, code enforcement, and drainage utilities. Water/wastewater is provided through the Municipal Utility District. Local Economy Fast-paced growth is one of the Town’s identifying characteristics, identified by both the Dallas Business Journal and Fort Worth Builders Association. Trophy Club’s location between DFW and Alliance Airports is ideal for businesses and residents, as well as those who commute to Dallas, Denton, Las Colinas, and Fort Worth. Trophy Club maintains a small-town, picturesque feel while taking advantage of nearby metro areas. The Town offers an outstanding quality of life, with great educational and recreational amenities as well as two 18-hole premier golf courses including the only course designed by Ben Hogan. The North Texas region possesses diverse research and education institutions, logistics, oil and gas, manufacturing and industrial, and a professional services base that has contributed to the relative stability of the unemployment rate with approximately half of the local workforce employed in management, professional, and related occupations. Figures from the Bureau of Labor Statistics indicate a Dallas/Fort Worth unemployment rate of 6.3% while the national unemployment rate is 7.8% as of September 2021. Trophy Club has worked diligently to position itself for a significant future within DFW and the Alliance corridor. The Town has issued over 1,000 building permits for high end homes over the past 9 years. There were 2 new residential building permits for a total of $1,685,000 and 0 new commercial building permits for Fiscal Year 2021. Eight commercial projects with a value of $3,190,000 and over 200 remodel/update residential projects with a value of $9,157,991 occurred in FY21. Additionally, the Town’s tax base exceeded $1.9. billion net taxable value in 2021. Business growth continues to be strong in Trophy Club and the Highway 114 region. The Town directly benefits from those businesses locating within the Town or professionals moving to our neighborhoods who work at nearby corporations. DRAFT - 3.18.22 186 iii Long-Term Financial Planning In December of 2015, the Town refunded the Trophy Club Public Improvement District No. 1 (PID No. 1) bonds which will help residents of the PID No. 1 realize over $16.4M in savings over the life of the debt. In August of 2020 the Town refunded $3,550,000 in Certificates of Obligation Bonds for a savings of $500,000 over the remaining 10 years. In FY21 the Town issued $4,305 million in debt for long term needs of Streets, Parks and Drainage. Due to premiums, the Town received $4.5 million in proceeds. Budgeting Process The Town of Trophy Club uses a program-based budgeting process. Each budgeting unit provides for the expenditures associated with services and supplies appropriated for in the prior year budget. Personnel expenditures are compiled by the Finance department. Any funding request that represents new expenditures and programs must be submitted as a separate supplemental request. Capital items are funded based on a replacement schedule, need, and available resources. Revenue Projection The budget revenue projections for the next fiscal year begin early in the current fiscal year. The projections are made by the departments responsible for the revenues with help from the Finance staff. Projections are based upon consultations with state and local agencies, trend analysis, anticipated changes in the local and regional economy, and discussions with directly associated staff members. Although revenue projections are prepared early in the budget process, the budget revenue analysis continues with departmental budget development and extends until the budget is adopted based upon any new information. Proposed Budget Analysis/Compilation The Finance Department reviews and compiles a preliminary departmental budget to present to the Budget Team, which is comprised of the Town Manager and Finance Manager. During Budget Team discussions, each department director answers questions from the entire group concerning their budget. Given revenue projections and baseline funding requirements, budget funding changes are made according to necessity and priority. A total recommended funding level is determined and is weighed against available resources. Proposed Budget Development The Town Manager shall prepare and submit to the Town Secretary, the annual budget covering the next fiscal year. The Town Manager’s proposed budget should assume, for each fund, operating revenues and resources that are equal to, or exceed operating expenditures. The Town Manager’s budget message summarizes funding requirements, major changes in programs, and alternatives for funding. Town Council Budget Study Each fund’s information, supplemental items, capital replacement data, and the five year capital improvement program are presented to the Council from May until the budget is adopted. This approach allows the Council to discuss items and give direction prior to the proposed budget being submitted. DRAFT - 3.18.22 187 iv Capital Program The Town Manager shall prepare and submit to the Council a five (5) year capital program no later than three months before the final date for submission of the budget. The capital program shall be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition (Charter Section 9.08). Public Hearing/Budget Adoption A public hearing on the proposed budget and the tax rate (if applicable) are held in August and September prior to final budget consideration. At the public hearings, citizens may make formal comments concerning the proposed budget. The public also has the opportunity to attend Town Council budget work sessions from May through budget adoption. Budget adoption occurs in September after Town Council deliberations and the public hearing(s). The Town Council adopts a tax rate to support adopted funding levels. Pursuant to Town Charter, the budget in place for the preceding year shall remain in place on a month-to-month basis until such time as a new budget has been adopted if no Town Council action is taken before the end of the fiscal year, September 30. Compilation of Adopted Budget/Budget Maintenance The adopted budget is compiled and published during the first months of the new fiscal year. The adopted budget in the form of an amended proposed budget is available for public inspection in October. Ledger accounts are prepared for the new fiscal year prior to October 1. Budget maintenance is a year-round activity of divisions/departments and Finance Department staff. Other spending control mechanisms include monthly review of expenditures by Finance Department staff. During the budget process, departments make revenue and expenditure estimates for the current year. Finally, program goals, objectives, and measures are evaluated during budget implementation to determine the effectiveness of program activities and levels of appropriate funding for subsequent years. Relevant Financial Policies Staff created the Town’s Investment Policy. The purpose of the investment policy was to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act”), which requires the Town of Trophy Club to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures, and practices that must be exercised to ensure effective and judicious fiscal management of Trophy Club’s funds. The investment policy received the Government Treasurers of Texas Certificate of Distinction for Investment Policy in June 2011. The Town Council adopted a fund balance policy in September 2011 which established new fund balance categories (as recommended by Statement No. 54 by the Governmental Accounting Standards Board) and established a minimum unassigned fund balance goal (30% of annual operating expenditures). In September 2016 the Town implemented revised purchasing and travel and training policies. Major Initiatives The Town Council has continued its strategic planning process to identify goals and objectives for long range planning. Each year, the Council meets in strategic planning retreats to review and refine those goals. Management Team members utilize the strategic planning documents to help guide their budget planning and service/program implementation. DRAFT - 3.18.22 188 v Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Trophy Club for its ACFR for the fiscal year ended September 30, 2020. This was the tenth consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not be accomplished without the dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to all staff members who assisted and contributed to the preparation of this report. Acknowledgment is also given to representatives of BKD LLP, Certified Public Accountants. Special acknowledgement is given to the Mayor and the members of the Town Council for their support for maintaining the highest standards of professionalism in the management of the Town of Trophy Club finances. Respectively submitted, Wade Carroll Mike Erwin Town Manager Finance Manager DRAFT - 3.18.22 189 DRAFT - 3.18.22 190 vi DRAFT - 3.18.22191 DRAFT - 3.18.22 192 vii DRAFT - 3.18.22 193 DRAFT - 3.18.22 194 viii DRAFT - 3.18.22 195 DRAFT - 3.18.22 196 Financial Section DRAFT - 3.18.22 197 DRAFT - 3.18.22 198 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 4 As management of the Town of Trophy Club, Texas (Town), we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-v of this report. Financial Highlights  The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $63,644,405 (net position). The unrestricted net position, which represents the amounts available to meet the Town’s ongoing obligations to citizens and creditors, was a $6,343,499.  The Town’s total net position decreased $1,255,688 primarily because of inclusion of the Tax Increment Reinvestment Zone No. 1 (TIRZ No. 1) fund in the primary government, declining contributions, and increases to public safety salaries.  At the close of the current fiscal year, the Town’s governmental funds reported combined fund balances of $20,727,099, an increase of $4,500,483 in comparison with the prior year. Of this amount, $6,548,591, or 32%, is available for spending at the government’s discretion (unassigned fund balance). Increase is due primarily to issuance of debt which will be expended on capital outlays in the future.  At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) for the general fund was $6,876,307, or approximately 54% of total general fund expenditures. Overview of the Financial Statements The discussion and analysis provided here are intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements consist of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-Wide Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. Two statements, the Statement of Net Position and the Statement of Activities, are utilized to provide this financial overview. DRAFT - 3.18.22 199 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 5 The statement of net position presents information on all of the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between the four is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. Other non-financial factors, such as the Town’s property tax base and the condition of the Town’s infrastructure, need to be considered in order to assess the overall health of the Town. The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, police, emergency medical services, community development, parks and recreation, streets, court, council, and administration. Normally, these operations are financed by property taxes, sales taxes, and franchise fees. The business-type activities of the Town include Trophy Club Park and Storm Drainage Utility operations. The government-wide financial statements include not only the Town itself (known as the primary government), but also the legally separate component unit, 4B Economic Development Corporation, which the Town is financially accountable. Financial information for the component unit is reported separately from the financial information presented for the primary government itself. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing DRAFT - 3.18.22 200 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 6 decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund, the capital projects fund, and the PID No. 1, which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in a separate section of the report. The Town adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. Proprietary Funds The Town’s proprietary funds are all enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for its Trophy Club Park and Storm Drainage operations. All activities associated with providing such services are accounted for in these funds, including salaries and benefits, supplies and materials, repairs and maintenance, utilities, and other operating expenses. The Town's intent is that costs of providing the services to the general public on a continuing basis is financed through user charges in a manner similar to a private enterprise. Proprietary financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Trophy Club Park, and Storm Drainage Utility. The Storm Drainage Utility is considered to be a major fund of the Town. Component Unit The Town maintains the accounting and financial statements for one discretely presented component unit, the 4B Economic Development Corporation, which is displayed separately on the government-wide financial statements. Notes to Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. DRAFT - 3.18.22 201 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 7 Other Information In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents certain Required Supplementary Information (RSI). The required RSI includes a budgetary comparison schedule for the general fund and public improvement district no. 1 fund. In addition, it includes information concerning the Town’s progress in funding its obligations to provide pension and OPEB benefits to its employees. Required supplementary information can be found immediately after the notes to the financial statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on pensions and OPEB. Government-wide Overall Financial Analysis As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the case of the Town, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $63,644,405, at the close of the most recent fiscal year. Statement of Net Position: The following table reflects the condensed Statement of Net Position: FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 Current and other assets 45,409,644$ 41,677,547$ 1,090,287$ 721,486$ 46,499,931$ 42,399,033$ Capital assets, net 66,002,719 69,044,358 1,759,272 1,803,997 67,761,991 70,848,355 Total assets 111,412,363 110,721,905 2,849,559 2,525,483 114,261,922 113,247,388 Deferred outflows of resources 2,944,702 3,314,815 - - 2,944,702 3,314,815 Other liabilities 3,000,045 1,397,880 12,498 15,286 3,012,543 1,413,166 Long-term liabilities 49,308,907 48,699,938 518,504 682,522 49,827,411 49,382,460 Total liabilities 52,308,952 50,097,818 531,002 697,808 52,839,954 50,795,626 Deferred inflows of resources 722,265 734,483 - - 722,265 734,483 Net investment in capital assets 27,008,067 51,061,357 1,240,768 1,121,475 28,248,835 52,182,832 Restricted 29,052,071 6,821,486 - - 29,052,071 6,821,486 Unrestricted 5,265,710 5,321,576 1,077,789 706,200 6,343,499 6,027,776 Total net position 61,325,848$ 63,204,419$ 2,318,557$ 1,827,675$ 63,644,405$ 65,032,094$ Governmental Activities Business-type Activities Totals DRAFT - 3.18.22 202 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 8 Current and other assets increased by $4.1 million from the prior year due primarily to unspent bond proceeds. Other liabilities in governmental activities increased $1.6 million from the previous year due to receiving of the first tranche of the American Rescue Plan Act (ARPA) funding but not expending it before year end Long‐term liabilities, which consist of bonds, compensated absences, pension liability, and other postemployment benefit obligations, increased by $450 thousand from the previous year for governmental and business‐type activities combined. During the current year, the Town issued $4.3 million in general obligation bonds to finance various capital projects throughout the Town. A portion of the Town’s net position, $28,248,835, reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), net of accumulated depreciation and less any related outstanding debt that was used to acquire those assets. The Town uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the Town’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town’s net position, $29,052,071 represents resources that are subject to external restrictions on how they may be used. As of the end of the current year, the Town’s unrestricted net position was a balance of $6,343,499. The Town’s overall net position decreased $1,255,688 from the prior fiscal year. The reasons for this overall decrease are discussed in the following sections for governmental activities and business‐type activities. DRAFT - 3.18.22 203 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 9 Statement of Activities: The following table provides a summary of the Town’s changes in net position: FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 Revenues: Program revenues: Charges for services 3,332,833$ 1,797,916$ 621,779$ 619,011$ 3,954,612$ 2,416,927$ Operating grants and contributions 37,851 2,056,622 4,170 - 42,021 2,056,622 Capital grants and contributions 150,000 - - 68,146 150,000 68,146 Total program revenues 3,520,684 3,854,538 625,949 687,157 4,146,633 4,541,695 General revenues: Property taxes 9,940,633 9,347,776 - - 9,940,633 9,347,776 Sales and mixed beverage taxes 2,035,404 1,445,994 - - 2,035,404 1,445,994 Franchise and lcoal taxes 869,212 850,543 - - 869,212 850,543 Occupancy tax 392,660 387,759 - - 392,660 387,759 Other revenues 62,904 414,384 - - 62,904 414,384 Investment Income 72,940 183,858 325 2,711 73,265 186,569 Total general revenues 13,373,753 12,630,314 325 2,711 13,374,078 12,633,025 Total revenues 16,894,437 16,484,852 626,274 689,868 17,520,711 17,174,720 Expenses: General government 1,381,483 797,113 - - 1,381,483 797,113 Manager's office 936,032 708,646 - - 936,032 708,646 Human resources 280,147 423,299 - - 280,147 423,299 Finance 512,144 607,160 - - 512,144 607,160 Information services 647,888 636,688 - - 647,888 636,688 Legal 118,756 102,606 - - 118,756 102,606 Municipal court 49,837 79,609 - - 49,837 79,609 Police 2,987,967 2,556,947 - - 2,987,967 2,556,947 Fire 1,336,171 1,221,699 - - 1,336,171 1,221,699 Emergency medical services 1,292,783 1,280,896 - - 1,292,783 1,280,896 Facilities management 448,538 336,161 - - 448,538 336,161 Parks and recreation 2,674,646 2,593,588 - - 2,674,646 2,593,588 Community development 639,321 498,920 - - 639,321 498,920 Tourism 317,005 64,392 - - 317,005 64,392 Sanitation 1,057,653 - - - 1,057,653 - Public works 2,308,861 2,052,018 - - 2,308,861 2,052,018 Interest and fiscal charges on long-term debt 1,535,312 1,639,671 - - 1,535,312 1,639,671 Storm Drainage Utility - - 126,163 93,912 126,163 93,912 Trophy Club Park - - 125,692 229,670 125,692 229,670 Total expenses 18,524,544 15,599,413 251,855 323,582 18,776,399 15,922,995 Increase in net position before transfers (1,630,107) 885,439 374,419 366,286 (1,255,688) 1,251,725 Transfers (116,463) 262,933 116,463 (262,933) - - Special item - (882,082) - - - (882,082) Change in net position (1,746,570) 266,290 490,882 103,353 (1,255,688) 369,643 Net Position, Beginning, as Previously Reported 63,204,419 62,938,129 1,827,675 1,724,322 65,032,094 64,662,451 Adjustment applicable to prior years (132,001) - - - (132,001) - Net Position, Beginning, as Restated 63,072,418 62,938,129 1,827,675 1,724,322 64,900,093 64,662,451 Net Position, ending 61,325,848$ 63,204,419$ 2,318,557$ 1,827,675$ 63,644,405$ 65,032,094$ Governmental Activities Business-type Activities Totals DRAFT - 3.18.22 204 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 10 Governmental Activities For the year ended September 30, 2021, revenues from governmental activities totaled $16,894,437. Property tax, grants and contributions, special assessments and sales tax are the Town’s largest general revenue sources. Overall revenue increased $409,585 or 2% from the prior year. Charges for services increased by $1,534,917 or 85% due primarily to inclusion of sanitation charges received during the year, previously netted with expenses, and a return to normal for the summer programs revenue. Operating grants and contributions decreased by $2,018,771 or 98% due to Coronavirus Aid, Relief, and Economic Security (CARES) Act funding in 2020 that did not repeat in 2021. Property taxes remain the largest source of revenue at $9,940,663 in the current fiscal year. The rate charged to property tax owners has remained consistent, however, the assessed valuation has risen from approximately $2.1 billion in 2020 to $2.4 billion in the current year. Sales and mixed beverage tax increased by $589,410 or 41% due to the added online sales tax and the inclusion of CCPD in the primary government. Occupancy taxes remained stable. Investment income decreased by $110,918 or 60% due to the impact of the market and realization of lower interest rates. Other revenues decreased by $351,480 or 85%, primarily as a result of nonrecurring refunds received in the prior year for the park land dedication fund. All other revenues remained relatively stable when compared to the previous year. For the year ended September 30, 2021, expenses for governmental activities totaled $18,524,544. This represents an increase of $2,925,131 or 19% from the prior year. The Town’s largest expense category is public safety, which totaled $5,616,921 at year-end and increased $557,000 from prior year due primarily to salary increases. General Government increased by $584,370 with the inclusion of the TIRZ No. 1 Fund. Parks and recreation expenses increased by $81,058 with a return to normal summer activities. Sanitation is a new expense reported this year. All other expenses remained relatively consistent when compared to the previous year. Business Type Activities Business-type activities are shown comparing operating costs to revenues generated by related services. For the year ended September 30, 2021, charges for services by business-type activities totaled $625,949 and remained basically the same. No grant revenues were recognized in FY21. Total business-type activity expenses decreased by $71,727. The Storm Drainage Utility increased expenses by $32,251 for creek maintenance and the Trophy Club Park decreased their expenses by $103,978 with no major projects. DRAFT - 3.18.22 205 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 11 Financial Analysis of the Town’s Funds As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal requirements. Governmental Funds - The focus of the Town’s governmental funds is to provide information of near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the Town’s net resources available for discretionary use as it represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the Town itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the Town’s Council. At September 30, 2021, the Town’s governmental funds reported combined fund balances of $20,727,099, an increase of $4,368,482, after the impact of restatement, in comparison with the prior year. Approximately 33% of this amount, $6,548,591, constitutes unassigned fund balance, which is available for spending at the Town’s discretion. The remainder of the fund balance is either nonspendable, restricted, or committed to indicate that it is 1) not in spendable form $727,449; 2) restricted for particular purposes $13,443,349; or 3) committed for a particular purpose $7,710. Analysis of Individual Funds The general fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the general fund was $6,876,307, while total fund balance increased to $7,603,756. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents 54% of total general fund expenditures, while total fund balance represents 60% of that same amount. The fund balance of the Town’s general fund decreased by $56,333 during the current fiscal year. This small increase as compared to previous years is due to use of fund balance for equipment purchases and use of fund balance to increase public safety salaries. The debt service fund had an ending fund balance of $423,426 at September 30, 2021, a decrease of $283,214 when compared to the previous year. The decrease in the total fund balance was a result of Sate of Texas’ change to the I&S calculation, which caused a decrease in the debt service portion of the total property tax rate. During the year, the fund recorded total principal and interest payments of $2,541,755 and property tax revenue of $2,419,975. The capital projects fund had an ending fund balance of $6,199,646. The capital projects fund increased by $4,215,000 when compared to the previous year. The increase was due to a deposit of bond proceeds that will be expended in future periods. The PID No. 1 fund reflected an ending fund balance of $3,933,794. The fund balance decreased $37,402, which is a result of debt service expenditures exceeding property assessments and other revenues. DRAFT - 3.18.22 206 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 12 Proprietary Funds - The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Net position in the Town’s largest proprietary fund, the Storm Drainage Utility fund, totaled $2,178,398. Unrestricted net position at the close of the fiscal year for the Town’s utility funds amounted to $986,864, an increase of $280,664 over the previous year. Total investment in capital assets, net of related debt was $1,191,534. General Fund Budgetary Highlights Total budgeted revenues of $11,723,459 were less than actual revenues of $13,108,890, resulting in a positive revenue variance of $1,385,431. The positive variance was primarily the result of greater than estimated revenues from sales tax, intergovernmental revenues, and charges for services. Charges for services were more than estimated due to the inclusion of sanitation charges received during the year, previously netted with expenses. Total budgeted expenditures of $11,953,320 were less than actual expenditures of $12,678,486, resulting in a negative expenditure variance of $725,165. The variance in total expenditures primarily related to sanitation, as discussed above, and capital outlay expenditures for capital equipment replacement. Capital Assets As of the end of the year, the Town’s governmental activities funds had invested $66,002,719 in a variety of capital assets and infrastructure, net of accumulated depreciation. The Town’s business-type activities funds had invested $1,759,272 in a variety of capital assets and infrastructure, net of accumulated depreciation. This investment in capital assets includes land, buildings, vehicles, machinery and equipment, storm drainage system, and infrastructure. FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 Land 10,487,119$ 10,463,669$ -$ -$ 10,487,119$ 10,463,669$ Construction in progress - 15,007 - - - 15,007 Buildings 8,854,289 9,236,150 - - 8,854,289 9,236,150 Improvements other than buildings 34,222,345 36,414,471 29,195 32,531 34,251,540 36,447,002 Machinery and equipment 676,101 682,438 20,039 10,345 696,140 692,783 Vehicles 538,703 470,359 - - 538,703 470,359 Water system 3,513,447 3,688,570 - - 3,513,447 3,688,570 Infrastructure 7,710,715 8,073,694 1,710,038 1,761,121 9,420,753 9,834,815 Totals 66,002,719$ 69,044,358$ 1,759,272$ 1,803,997$ 67,761,991$ 70,848,355$ Governmental Activities Business-type Activities Totals Major capital asset events during the current year include the following:  Purchase of new vehicles for fire and police.  Purchase of new equipment for parks and recreation department. More detailed information about the Town’s capital assets is presented in the notes to the financial statements. DRAFT - 3.18.22 207 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 13 Long-Term Debt The Town's outstanding general obligation bonds, certificate of obligation bonds, and special assessment bonds, net of all premiums and discounts increased by $822,881 for governmental activities and decreased by $164,018 for business-type activities, from the prior year. The total bonds payable at the close of the fiscal year, was $47,474,808 for governmental-activities and $518,404 for business-type activities. Of this amount, $21,541,000 comprises of bonded debt backed by the full faith and credit of the Town, and the remaining represents bonds secured solely by self-supporting activities. FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 General obligation bonds 7,500,000$ 9,005,000$ -$ -$ 7,500,000$ 9,005,000$ Certificates of obligation 13,531,000 9,789,000 510,000 670,000 14,041,000 10,459,000 Special assessment bonds 22,645,000 23,985,000 - - 22,645,000 23,985,000 Premiums on bonds 3,798,808 3,872,927 8,504 12,522 3,807,312 3,885,449 Totals 47,474,808$ 46,651,927$ 518,504$ 682,522$ 47,993,312$ 47,334,449$ Governmental Activities Business-type Activities Totals More detailed information about the Town’s long-term liabilities is presented in the notes to the financial statements. Economic Factors and Next Year’s Budget and Rates The Town is approximately 90% residential and 10% commercial, with both residential and commercial development substantially built out. The Town issued 2 residential construction permits in fiscal year 2021 and no new commercial permits. The Town estimates only 50-60 additional residential permits will be pulled in the future and 3-5 large commercial permits. The Town’s 2022 budget will raise more total property taxes than the 2021 budget by $403,823 or 4.8%, and of that amount $268,377 is the tax revenue raised from new property added to the roll. Budgeted capital expenditures include funds for the replacement of a fire engine, 3 patrol vehicles, obsolete handheld radios for the Police Department and the replacement of playground equipment at our Independence Park East. In fiscal year 2022, General Fund revenues are budgeted to increase 4.85% over fiscal year 2021 estimated revenues, while expenditures are budgeted to increase by 0.22% over fiscal year 2021 estimated expenditures. The fiscal year 2022 budget decreased the ad valorem tax rate to $0.445 per hundred dollars of assessed value. DRAFT - 3.18.22 208 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2021 14 Contacting the Town’s Financial Management This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Town of Trophy Club Finance Manager, 1 Trophy Wood Drive, Trophy Club, Texas, 76262. This information can also be accessed on the Town of Trophy Club’s website at www.trophyclub.org. DRAFT - 3.18.22 209 DRAFT - 3.18.22 210 Basic Financial Statements DRAFT - 3.18.22 211 DRAFT - 3.18.22 212 Town of Trophy Club, Texas Statement of Net Position September 30, 2021 See Notes to Financial Statements 15 Component Unit 4B Economic Governmental Business-type Development Activities Activities Total Corporation Assets Cash and cash equivalents 22,522,830$ 1,053,508$ 23,576,338$ 358,655$ Taxes receivable, net 527,880 - 527,880 122,427 Special assessments receivable 21,789,856 - 21,789,856 - Receivables, net 220,627 35,857 256,484 - Due from other governments 7,505 - 7,505 - Notes receivable - - - 200,000 Prepaid and other assets 340,946 922 341,868 - Capital assets not being depreciated 10,487,119 - 10,487,119 2,538,765 Capital assets, net of accumulated depreciation 55,515,600 1,759,272 57,274,872 310,721 Total Assets 111,412,363 2,849,559 114,261,922 3,530,568 Deferred Outflows of Resources Pension related 589,600 - 589,600 - OPEB related 74,592 - 74,592 - Deferred charge on refunding 2,280,510 - 2,280,510 - Total Deferred Outflows of Resources 2,944,702 - 2,944,702 - Liabilities Accounts payable 561,424 11,294 572,718 - Accrued liabilities 572,290 - 572,290 - Unearned revenue 1,542,591 - 1,542,591 - Accrued interest payable 323,740 1,204 324,944 7,521 Noncurrent liabilities Due within one year: Bonds payable 3,538,000 165,000 3,703,000 110,000 Compensated absences 339,407 - 339,407 - Due in more than one year: Bonds payable 43,936,808 353,504 44,290,312 1,936,457 Compensated absences 47,286 - 47,286 - Total OPEB liability 381,486 - 381,486 - Net pension liability 1,065,920 - 1,065,920 - Total Liabilities 52,308,952 531,002 52,839,954 2,053,978 Deferred Inflows of Resources Pension related 695,587 - 695,587 - OPEB related 26,678 - 26,678 - Total Deferred Inflows of Resources 722,265 - 722,265 - Net Position Net investment in capital assets 27,008,067 1,240,768 28,248,835 803,029 Restricted for: Municipal court 36,824 - 36,824 - Debt service 4,375,732 - 4,375,732 87,491 Economic development - - - 586,070 Public safety 284,013 - 284,013 - PID Activities 21,789,856 - 21,789,856 - Street maintenance 302,901 - 302,901 - Tourism 1,726,744 - 1,726,744 - Parks 536,001 - 536,001 - Unrestricted 5,265,710 1,077,789 6,343,499 - Total Net Position 61,325,848$ 2,318,557$ 63,644,405$ 1,476,590$ Primary Government DRAFT - 3.18.22 213 Town of Trophy Club, Texas Statement of Activities For the Year Ended September 30, 2021 See Notes to Financial Statements 16 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government Governmental activities General government 1,381,483$ 286,695$ -$ -$ Manager's office 936,032 - - - Human resources 280,147 - - - Finance 512,144 - - - Information services 647,888 - - - Legal 118,756 - - - Municipal court 49,837 110,550 - - Police 2,987,967 123,942 1,448 - Fire 1,336,171 1,344,545 6,403 - Emergency medical services 1,292,783 95,775 - - Facilities management 448,538 - - - Parks and recreation 2,674,646 301,668 - 150,000 Community development 639,321 1,775 30,000 - Tourism 317,005 - - - Sanitation 1,057,653 1,058,213 - - Public works 2,308,861 9,670 - - Interest and fiscal charges on long-term debt 1,535,312 - - - Total Governmental Activities 18,524,544 3,332,833 37,851 150,000 Business-Type activities Storm Drainage Utility 126,163 435,798 4,170 - Trophy Club Park 125,692 185,981 - - Total Business-Type Activities 251,855 621,779 4,170 - Total Primary Government 18,776,399$ 3,954,612$ 42,021$ 150,000$ Component Unit 4B Economic Development Corporation 268,655$ -$ -$ -$ Total Component Unit 268,655$ -$ -$ -$ General Revenues and transfers General revenues: Taxes Property taxes Sales and mixed beverage taxes Franchise and local taxes Occupancy tax Other revenues Investment Income Transfers Total general revenues and transfers Change in net position Net Position, Beginning, as Previously Reported Adjustment applicable to prior years Net Position, Beginning, as Restated Net Position, Ending Program Revenues DRAFT - 3.18.22 214 Town of Trophy Club, Texas Statement of Activities (Continued) For the Year Ended September 30, 2021 See Notes to Financial Statements 17 Component Unit 4B Economic Governmental Business-Type Development Activities Activities Total Corporation (1,094,788)$ -$ (1,094,788)$ -$ (936,032) - (936,032) - (280,147) - (280,147) - (512,144) - (512,144) - (647,888) - (647,888) - (118,756) - (118,756) - 60,713 - 60,713 - (2,862,577) - (2,862,577) - 14,777 - 14,777 - (1,197,008) - (1,197,008) - (448,538) - (448,538) - (2,222,978) - (2,222,978) - (607,546) - (607,546) - (317,005) - (317,005) - 560 - 560 - (2,299,191) - (2,299,191) - (1,535,312) - (1,535,312) - (15,003,860) - (15,003,860) - - 313,805 313,805 - - 60,289 60,289 - - 374,094 374,094 - (15,003,860)$ 374,094$ (14,629,766)$ -$ (268,655)$ (268,655)$ 9,940,633 - 9,940,633 - 2,035,404 - 2,035,404 669,026 869,212 - 869,212 - 392,660 - 392,660 - 62,904 - 62,904 - 72,940 325 73,265 22 (116,463) 116,463 - - 13,257,290 116,788 13,374,078 669,048 (1,746,570) 490,882 (1,255,688) 400,393 63,204,419 1,827,675 65,032,094 944,196 (132,001) - (132,001) 132,001 63,072,418 1,827,675 64,900,093 1,076,197 61,325,848$ 2,318,557$ 63,644,405$ 1,476,590$ Net (Expenses) Revenues and Changes in Net Position Primary Government DRAFT - 3.18.22 215 Town of Trophy Club, Texas Balance Sheet – Governmental Funds September 30, 2021 See Notes to Financial Statements 18 Nonmajor Total Debt Capital PID Governmental Governmental General Service Projects No. 1 Funds Funds Assets Cash and cash equivalents 9,041,377$ 422,840$ 6,201,544$ 3,963,579$ 2,893,490$ 22,522,830$ Taxes receivable, net 342,231 19,098 - 166,551 527,880 Special assessment receivable - - - 21,789,856 - 21,789,856 Accounts receivable, net 220,627 - - - - 220,627 Due from other governments 7,505 - - - - 7,505 Due from other funds 29,785 - - - - 29,785 Prepaid and other assets 340,946 - - - - 340,946 Advances from other funds 386,503 - - - - 386,503 Total Assets 10,368,974 441,938 6,201,544 25,753,435 3,060,041 45,825,932 Liabilities Accounts payable 452,465 - 1,898 - 107,061 561,424 Accrued liabilites 572,290 - - - - 572,290 Unearned revenue 1,542,591 - - - - 1,542,591 Due to other funds - - - 29,785 - 29,785 Advances to other funds - - - - 386,503 386,503 Total Liabilities 2,567,346 - 1,898 29,785 493,564 3,092,593 Deferred Inflows of Resources Unavailable revenue - property taxes 62,066 18,512 - - - 80,578 Unavailable revenue - fines and forfeitures 25,509 - - - - 25,509 Unavailable revenue - emergency medical services 84,980 - - - - 84,980 Unavailable revenue - special assessments - - - 21,789,856 - 21,789,856 Unavailable revenue - property liens 25,317 - - - - 25,317 Total Deferred Inflows of Resources 197,872 18,512 - 21,789,856 - 22,006,240 Fund Balances Nonspendable: Prepaid items 340,946 - - - - 340,946 Long‐term interfund advances 386,503 - - - - 386,503 Restricted Debt service - 423,426 - 3,933,794 - 4,357,220 Capital projects - - 6,199,646 - - 6,199,646 Municipal court - - - - 36,824 36,824 Public safety - - - - 284,013 284,013 Street maintenance - - - - 302,901 302,901 Tourism - - - - 1,726,744 1,726,744 Parks - - - - 536,001 536,001 Committed for: Recreation programs - - - - 7,710 7,710 Unassigned 6,876,307 - - - (327,716) 6,548,591 Total Fund Balances 7,603,756 423,426 6,199,646 3,933,794 2,566,477 20,727,099 Total liabilities, deferred inflows of resources, and fund balances (deficits)10,368,974$ 441,938$ 6,201,544$ 25,753,435$ 3,060,041$ 45,825,932$ DRAFT - 3.18.22 216 Town of Trophy Club, Texas Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2021 See Notes to Financial Statements 19 Amounts reported for governmental activities in the statement of net position are different because: Total fund balance per balance sheet 20,727,099$ Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds. 66,002,719 Other long-term assets less related uncollectibles are not available to pay for current period expenditures and therefore are reported as unavailable revenues in the governmental funds. 22,006,240 Accrued interest payable on long-term debt does not require current financial resources and therefore is not reported as a liability in the balance sheet of governmental funds.(323,740) Long-term liabilities, including bonds payable and net pension liability (and the related deferred inflows and deferred outflows) are not due and payable in the current period and therefore are not reported as liabilities, deferred outflows or deferred inflows in the governmental funds. Long-term liabilities consist of: General obligation bonds payable (7,500,000)$ Certificate of obligation bonds payable (13,531,000) Special Assessment Bonds (22,645,000) Deferred amount on refunding 2,280,510 Unamortized premiums on bonds (3,798,808) Total other postemployment benefit (OPEB) liability (381,486) Net pension liability (1,065,920) Deferred outflows of resources – pension 589,600 Deferred outflows of resources – OPEB 74,592 Deferred inflows of resources – pension (695,587) Deferred inflows of resources – OPEB (26,678) Accrued compensated absences (386,693) (47,086,470) Net position of governmental activities 61,325,848$ DRAFT - 3.18.22 217 Town of Trophy Club, Texas Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds For the Year Ended September 30, 2021 See Notes to Financial Statements 20 Nonmajor Total Debt Capital PID Governmental Governmental General Service Projects No.1 Funds Funds Revenues Property tax 7,396,475$ 2,419,973$ -$ -$ 124,873$ 9,941,321$ Sales and mixed beverage taxes 1,383,994 - - - 651,410 2,035,404 Franchise and local taxes 869,212 - - - - 869,212 Occupancy tax - - - - 392,660 392,660 Special assessments - - - 2,195,144 - 2,195,144 License and permits 284,500 - - - - 284,500 Intergovernmental 1,363,876 - - - 1,448 1,365,324 Charges for services 1,424,580 - - - 6,763 1,431,343 Fines and forfeitures 328,220 - - - 8,903 337,123 Investment income 29,353 741 7,015 34,638 1,193 72,940 Other revenue 28,680 14,290 - - 169,934 212,904 Total Revenues 13,108,890 2,435,004 7,015 2,229,782 1,357,184 19,137,875 Expenditures Current: General government 153,888 - 772,870 47,111 - 973,869 Manager's office 973,427 - - - - 973,427 Human resources 287,521 - - - - 287,521 Finance 528,002 - - - - 528,002 Information services 595,432 - - - - 595,432 Legal 118,756 - - - - 118,756 Municipal court 47,930 - - - 3,417 51,347 Police 2,843,717 - - - 130,208 2,973,925 Fire 1,357,987 - - - - 1,357,987 Emergency medical services 1,284,482 - - - - 1,284,482 Facilities management 450,853 - - - - 450,853 Parks and recreation 1,918,606 - - - 4,115 1,922,721 Community development 526,177 - - - 127,930 654,107 Tourism 197,113 - - - 122,830 319,943 Sanitation 1,057,653 - - - - 1,057,653 Public works - - - - 204,633 204,633 Debt Service: Principal - 2,068,000 - 1,340,000 - 3,408,000 Interest and fiscal charges - 473,755 98,386 880,073 - 1,452,214 Capital outlay 336,942 - 23,450 - 148,356 508,748 Total Expenditures 12,678,486 2,541,755 894,706 2,267,184 741,489 19,123,620 Excess (Deficiency) of Revenues Over (Under) Expenditures 430,404 (106,751) (887,691) (37,402) 615,695 14,255 Other Financing Sources (Uses) Transfers in 156,082 - 500,000 - 30,153 686,235 Transfers out (530,153) (176,463) - - (96,082) (802,698) Proceeds from general obligation bonds issue - - 4,305,000 - - 4,305,000 Premium on general obligation bonds issued - - 297,691 - - 297,691 Total Other Financing Sources (Uses) (374,071) (176,463) 5,102,691 - (65,929) 4,486,228 Net Change in Fund Balances 56,333 (283,214) 4,215,000 (37,402) 549,766 4,500,483 Fund Balances, Beginning 7,547,423 706,640 1,984,646 3,971,196 2,016,711 16,226,616 Fund Balances, Ending 7,603,756$ 423,426$ 6,199,646$ 3,933,794$ 2,566,477$ 20,727,099$ DRAFT - 3.18.22 218 Town of Trophy Club, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended September 30, 2021 See Notes to Financial Statements 21 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balance - total governmental funds 4,500,483$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeds depreciation in the current period. Capital outlay expenditures 508,748$ Depreciation expense (3,530,744) (3,021,996) The net effect of various transactions involving capital assets (i.e. sales, trade-ins, donations, and transfers to business-type activities) is to decrease net position. (19,644) Certain revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. This amount is the net change in deferred inflows of resources. (2,243,438) The issuance of long-term debt (e.g. bond proceeds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. 'Neither transaction, however, has any effect on net position. Also governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Principal amount of debt issued (4,305,000)$ Amortization of bond premium 371,810 Principal amount of debt paid to bondholders 3,408,000 Net change in accrued interest payable 4,888 Premium on bonds issued (297,691) Net deferred offering charges and related debt issuance items (459,796) (1,277,789) Some expenditures reported in the statement of revenues, expenditures, and changes in fund balances do not require the use of current financial resources but are reported as expenses in the statement of activities. This adjustment is to reflect the net change in accrued compensated absences. (40,704) Current year OPEB expenditures are reported on the fiscal year basis in the governmental statement of revenues, expenditures and changes in fund balance and as actuarially determined in the government-wide statement of activities. These differences are reflected in total OPEB liability and related deferred outflows and inflows of resources balances. (47,634) Current year pension expenditures are reported on the fiscal year basis in the governmental statement of revenues, expenditures and changes in fund balance and as actuarially determined in the government-wide statement of activities. These differences are reflected in net pension liability and related deferred outflows and inflows of resources balances. 404,152 Change in net position of governmental activities (1,746,570)$ DRAFT - 3.18.22 219 Town of Trophy Club, Texas Statement of Net Position – Proprietary Funds September 30, 2021 See Notes to Financial Statements 22 Nonmajor Fund Storm Drainage Trophy Utility Club Park Total Assets Current Assets Cash and cash equivalents 959,446$ 94,062$ 1,053,508$ Accounts receivable 35,857 - 35,857 Prepaid items - 922 922 Total Current Assets 995,303 94,984 1,090,287 Noncurrent Assets Capital assets: Net depreciable capital assets 1,710,038 49,234 1,759,272 Total Noncurrent Assets 1,710,038 49,234 1,759,272 Total Assets 2,705,341 144,218 2,849,559 Liabilities Current Liabilities Accounts payable 7,235 4,059 11,294 Accrued interest 1,204 - 1,204 Long-term debt due within one year 165,000 - 165,000 Total Current Liabilities 173,439 4,059 177,498 Noncurrent liabilities: Long-term debt due in more than one year 353,504 - 353,504 Total Liabilities 526,943 4,059 531,002 Net Position Net investment in capital assets 1,191,534 49,234 1,240,768 Unrestricted 986,864 90,925 1,077,789 Total Net Position 2,178,398$ 140,159$ 2,318,557$ Business-type Activities DRAFT - 3.18.22 220 Town of Trophy Club, Texas Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds For the Year Ended September 30, 2021 See Notes to Financial Statements 23 Nonmajor Fund Storm Drainage Trophy Utility Club Park Total Operating revenues Charges for services 435,798$ 185,981$ 621,779$ Total Operating Revenues 435,798 185,981 621,779 Operating Expenses Salaries and benefits - 49,489 49,489 Supplies and materials - 5,694 5,694 Repairs and maintenance 6,121 18,512 24,633 Utilities 5,900 9,441 15,341 Contractual services 51,270 36,416 87,686 Depreciation 51,083 6,140 57,223 Total Operating Expenses 114,374 125,692 240,066 Operating Income 321,424 60,289 381,713 Nonoperating Revenues (Expenses) Intergovernmental - 4,170 4,170 Investment income 325 - 325 Interest expense (11,789) - (11,789) Total Nonoperating Revenues (Expenses) (11,464) 4,170 (7,294) Income Before Capital Contributions and Transfers 309,960 64,459 374,419 Transfers in 176,463 - 176,463 Transfers out (40,000) (20,000) (60,000) Change in Net Position 446,423 44,459 490,882 Net Position, Beginning 1,731,975 95,700 1,827,675 Net Position, Ending 2,178,398$ 140,159$ 2,318,557$ Business-type Activities DRAFT - 3.18.22 221 Town of Trophy Club, Texas Statement of Cash Flows – Proprietary Funds For the Year Ended September 30, 2021 See Notes to Financial Statements 24 Nonmajor Fund Storm Drainage Trophy Utility Club Park Total Cash Flows from Operating Activities Receipts from customers and users 440,694$ 236,252$ 676,946$ Payments to suppliers and service providers (56,056) (75,781) (131,837) Payments to employees for salaries and benefits - (51,160) (51,160) Net Cash Provided by Operating Activities 384,638 109,311 493,949 Cash Flows from Noncapital Financing Activities Transfers to other funds (40,000) (20,000) (60,000) Transfers from other funds 176,463 - 176,463 Operating grants - 4,170 4,170 Net Cash Provided by (Used for) Noncapital Financing Activities 136,463 (15,830) 120,633 Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets - (12,498) (12,498) Interest paid on capital debt (16,466) - (16,466) Principal paid on capital debt (160,000) - (160,000) Net Cash Used for Capital and Related Financing Activities (176,466) (12,498) (188,964) Cash Flows from Investing Activities Interest on investments 325 - 325 Net Cash Provided by Investing Activities 325 - 325 Net Increase in Cash and Cash Equivalents 344,960 80,983 425,943 Cash and Cash Equivalents, Beginning 614,486 13,079 627,565 Cash and Cash Equivalents, Ending 959,446$ 94,062$ 1,053,508$ Reconciliation of operating income to net cash provided by operating activities: Operating Income 321,424$ 60,289$ 381,713$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 51,083 6,140 57,223 Changes in operating assets and liabilities: (Increase) Decrease in: Accounts receivable 4,896 50,271 55,167 Prepaid items - 1,975 1,975 Increase (Decrease) in: Accounts payable 7,235 (9,364) (2,129) Net cash provided by operating activities 384,638$ 109,311$ 493,949$ Business-type Activitie s DRAFT - 3.18.22 222 DRAFT - 3.18.22 223 Notes to Financial Statements DRAFT - 3.18.22 224 DRAFT - 3.18.22 225 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 25 Note 1: Summary of Significant Accounting Policies The Town of Trophy Club (Town) is a “home rule town” incorporated in 1985. The Town operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety (police and emergency medical services), parks, public works (public improvements, streets, planning, and zoning), and general administrative services. The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The Town’s significant accounting policies are described below. Description of Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. The Town currently has no fiduciary activities. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from a legally separate component unit for which the primary government is financially accountable. Financial Reporting Entity The Town of Trophy Club is a municipal corporation governed by an elected mayor and a six- member council. The accompanying financial statements present the government and its component units, entities for which the government is considered financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Thus, blended component units are appropriately presented as funds of the primary government. The discretely presented component unit is reported in a separate column in the government‐wide financial statements to emphasize that it is both legally and substantively separate from the primary government. DRAFT - 3.18.22 226 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 26 Blended Component Units Public Improvement District (PID) No. 1 On May 7, 2007, the Trophy Club Town Council approved Resolution 2007-08 authorizing and providing for the creation of a Public Improvement District. Trophy Club PID No.1 consists of approximately 609.68 acres within the corporate limits of the Town of Trophy Club. This District was created in accordance with Chapter 372 of the Texas Local Government Code. The PID issued refunding bonds in December 2015, with the approval of Town Council. The Town Council must review and update the service plan annually for the purpose of determining the annual budget for the PID No. 1. In addition, the PID No. 1 exclusively or almost exclusively benefits the primary government. The PID No. 1 is reported as major special revenue fund and does not issue separate financial statements. Tax Increment Reinvestment Zone No. 1 (TIRZ No. 1) The Tax Increment Reinvestment Zone No. 1 is governed by a board appointed by the Town’s Council. The Town can impose its will on the TIRZ No. 1 and affect the day-to-day operations of the TIRZ No. 1 by removing appointed board members at will. The TIRZ No. 1 is funded by revenues generated through tax increment financing. Therefore, the primary government has an obligation to provide support to the TIRZ No. 1 (a financial burden). The TIRZ No. 1 is reported as a nonmajor special revenue fund and does not issue separate financial statements. Crime Control and Prevention District The Crime Control and Prevention District (CCPD) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention Act. The CCPD is organized exclusively to act on behalf of the Town to finance crime control within the Town. The CCPD is governed by a seven member board appointed by the Town Council. The annual budget and issuance of debt must be approved by the Town Council. The CCPD provides services entirely, or almost entirely to the primary government. The CCPD is reported as a nonmajor special revenue fund and does not issue separate financial statements. Discretely Presented Component Unit 4B Economic Development Corporation The 4B Economic Development Corporation (4B) serves all citizens of the Town and is governed by a board appointed by the Town’s elected council. The Town can impose its will on the 4B and affect the day-to-day operations of the 4B by removing appointed board members at will. The scope of public service of the 4B benefits the Town and its citizens and is operated within the geographic boundaries of the Town. Since the 4B's governing body is not substantively the same as the governing body of the primary government, does not provide services entirely, or almost entirely to the primary government, nor does it maintain debt of any type that are repaid using Town resources, it has been reported as a discretely presented component unit. Separate financial statements for 4B component unit are not prepared. DRAFT - 3.18.22 227 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 27 Basis of Presentation – Government-Wide Financial Statements While separate government‐wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds, while business‐type activities incorporate data from the Town’s enterprise funds. Separate financial statements are provided for governmental funds and proprietary funds. As discussed earlier, the Town has one discretely presented component unit. It is shown in a separate column in the government‐wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided, and other charges between various other functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Basis of Presentation – Fund Financial Statements The fund financial statements provide information about the Town’s funds, including its blended component units. Separate statements for each fund category—governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. The Town reports the following major governmental funds:  General Fund – The General Fund is the main operating fund of the Town. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund.  Debt Service Fund – The Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest and related costs on long-term debt paid primarily from taxes levied by the Town. The fund balance of the Debt Service Fund is restricted to signify the amounts that are restricted exclusively for debt service expenditures.  Capital Projects Fund – The Capital Projects Fund is used to account for funds received and expended for acquisition and construction of infrastructure and other capital assets.  Public Improvement District (PID) No. 1 – This fund accounts for bond proceeds, assessments and related debt associated with the issuance of bonds issued by the Town for the Public Improvement District. DRAFT - 3.18.22 228 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 28 The Town reports the following major enterprise fund:  Storm Drainage Utility Fund – The storm drainage fund accounts for the storm drainage utility fee designated for the maintenance of the Town's storm drainage system. During the course of operations the Town has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. Further, certain activity occurs during the year involving transfers of resources between funds reported at gross amounts as transfers in/out. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government‐wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business‐type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business‐type activities column. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business‐type activities are eliminated so that only the net amount is included as transfers in the business‐type activities column. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of recognition in the financial statements of various kinds of transactions or events. The government‐wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. DRAFT - 3.18.22 229 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 29 The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they have been earned and they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service principal and interest expenditures on general long‐term debt, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, and postemployment benefits are recognized later based on specific accounting rules applicable to each, generally when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long‐term debt and financing through leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Expenditure‐driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 1 years of year-end). All other revenue items are considered to be measurable and available only when cash is received by the Town. Budgetary Information Budgetary Basis of Accounting Annual budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP) for the general, hotel occupancy tax, street maintenance sales tax, court technology, court security, recreation programs, park land dedication, crime control and prevention district, and TIRZ No. 1 funds. The capital projects fund is appropriated on a project‐length basis. The grants fund does not have appropriated budgets since other means control the use of these resources (e.g., grant awards) and sometimes span a period of more than one fiscal year. The original budget is adopted by the Town Council prior to the beginning of the year. The legal level of control as defined by the Town Charter is the fund level. No funds can be transferred or added which affect the total fund expenditures without Town Council approval. Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances technically lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are reappropriated and become part of the subsequent year’s budget pursuant to state regulations, and the encumbrances are automatically reestablished in the next year. DRAFT - 3.18.22 230 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 30 Deposits and Investments The Town’s cash and cash equivalents includes cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Because the Town, at its option, can withdraw funds within a twenty-four hour period from TexPool and Texas Class, these investments are considered to be cash equivalents. State statutes authorize the Town to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or, (B) secured by obligations that are described by (1) – (4); or, (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by (1), pledged with third party selected or approved by the Town, and placed through a primary government securities dealer. The Town’s investments are governed by the same state statutes. All investments are recorded at fair value based on quoted market prices. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties. Receivables and Interfund Transactions Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds” in the fund financial statements. If the transactions are between the primary government and its component unit, these receivables and payables are classified as “due to/from component unit/primary government.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds are offset by a nonspendable fund balance account in the applicable governmental fund to indicate they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of any allowance for uncollectible amounts. DRAFT - 3.18.22 231 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 31 Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government‐wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Restricted Assets Certain proceeds of governmental fund cash and investments are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants, legal restrictions, or restrictions in place by outside parties. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business‐type activities column in the government‐wide financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. As the Town constructs or acquires capital assets each period, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs, which are amounts spent in relation to capital assets that do not increase the asset’s capacity or efficiency or increase its estimated useful life. Donated capital assets are recorded at acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential on the date of the donation. Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the Town are depreciated using the straight‐line method over the following estimated useful lives: Buildings 30 Years Improvements other than buildings 10-30 Years Improvements other than buildings (streets) 30 Years Machinery and equipment 7-15 Years Vehicles 5-10 Years Water system 25 Years Infrastructure (storm drainage system) 40 Years DRAFT - 3.18.22 232 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 32 Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has three items that qualify for reporting in this category. The three items are is the deferred charge on refunding reported in the government‐wide statement of net position, and deferred amounts related to pension and OPEB. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The deferred amounts related to pension and OPEB relate to contributions after the measurement date and changes in actuarial assumptions. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town has three items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from: property taxes, special assessments, fines and forfeitures, and ambulance fees. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the government‐wide financial statements the Town reports deferred amounts related to pension and OPEB relating to the difference between projected and actual investment earnings, changes in actuarial assumptions, and difference in expected and actual economic experience. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities statement of net position. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements until due. The debt proceeds are reported as other financing sources, net of the applicable premium or discount and payments of principal and interest reported as expenditures. In the governmental fund types, issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. However, claims and judgments paid from governmental funds are reported as a liability in the fund financial statements only for the portion expected to be financed from expendable available financial resources. Long-term debt and other obligations, financed by proprietary funds, are reported as liabilities in the appropriate funds. For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds, if material. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are expensed when incurred. DRAFT - 3.18.22 233 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 33 Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Other Postemployment Benefits (OPEB) The Town has two single-employer defined benefit other postemployment benefit (OPEB) plans (Plans). For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Net Position For government‐wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted.  Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position.  Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.  Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. DRAFT - 3.18.22 234 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 34 Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government‐wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is Town’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance In governmental fund types, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called “fund balance.” The Town’s governmental funds report the following categories of fund balance, based on the nature of any limitations requiring the use of resources for specific purposes.  Nonspendable fund balance represents amounts that are either not in a spendable form or are legally or contractually required to remain intact.  Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers such as grantors or enabling federal, state, or local legislation. Restrictions may be changed or lifted only with the consent of the resource providers.  Committed fund balance represents amounts that can be used only for the specific purposes determined by of the adoption of an ordinance committing fund balance for a specified purpose by the Town’s Council prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the specified purpose or the Council adopts another ordinance to remove or revise the limitation.  Assigned fund balance represents amounts that are intended to be used by the Town for specific purposes but do not meet the criteria to be classified as committed. The Council has by resolution authorized the finance director and town manager to assign fund balance. The Council may also assign fund balance, as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.  Unassigned fund balance represents the residual amount for the general fund that is not contained in the other classifications. The general fund is the only fund that reports a positive unassigned fund balance. Additionally, any deficit fund balance within the other governmental fund types is reported as unassigned. DRAFT - 3.18.22 235 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 35 As previously mentioned, sometimes the Town will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. Property Taxes Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. Under state law, property taxes levied on real property constitute a lien on the real property which cannot be forgiven without specific approval of the State Legislature. The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible by the Town. Property taxes at the fund level are recorded as receivables and deferred revenues at the time the taxes are assessed. Revenues are recognized as the related ad valorem taxes are collected. Additional amounts estimated to be collectible in time to be a resource for payment of obligations incurred during the fiscal year and therefore susceptible to accrual in accordance with Generally Accepted Accounting Principles have been recognized as revenue. Accumulated Vacation, Compensated Time, and Sick Leave It is the Town’s policy to permit employees to accumulate earned but unused vacation pay benefits. No liability is reported for unpaid accumulated sick leave. All vacation pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they are expected to be liquidated with expendable available financial resources, for example, as a result of employee resignations and retirements. DRAFT - 3.18.22 236 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 36 Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the utility fund, golf course fund, and storm water utility funds are charges to customers for sales and services. The utility fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Adoption of GASB Statements No. 84, Fiduciary Activities, (GASB 84) and No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 (GASB 97) During 2021, the Town implemented GASB 84 and GASB 97. These statements establish criteria for identifying fiduciary activities of all state and local governments. The adoption of GASB 84 and GASB 97 had no impact on the Town’s financial statements. Future Adoption of Accounting Pronouncements The GASB has issued the following statements which will be effective in future years as described below. The impact on the Town’s financial statements of implementation has not yet been determined for the following: GASB Statement No. 87, Leases, is effective for the Town’s fiscal year 2022. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments through increasing the usefulness of governments’ financial statements by requiring recognition of certain leases assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. DRAFT - 3.18.22 237 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 37 GASB Statement No. 94, Public-Private and Public-Private Partnerships (PPPs) and Availability Payment Arrangements, is effective for the Town’s fiscal year 2023. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA), is effective for the Town’s fiscal year 2023. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. Note 2: Stewardship, compliance, and accountability Deficit Fund Equity At September 30, 2021, the Tax Increment Reinvestment Zone No. 1 fund had a deficit fund balance of $327,716. The deficit balances will be eliminated in the future as assessed values continue to increase as a result of growth and development within the TIRZ. Note 3: Cash and Investments The Town utilizes a pooled cash and investment concept for all its funds, to maximize its investment program. Investment income from this internal pooling is allocated to the respective funds based upon the sources of funds invested. Deposits At September 30, 2021, the carrying amount of the Town’s demand deposits, including its component unit, totaled $15,380,454 and the bank balance was $15,648,112. Cash on hand for the Town was $600 and the carrying amount of cash for the Public Improvement District No. 1 was $3,963,579. DRAFT - 3.18.22 238 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 38 Custodial Credit Risk In the case of deposits, this is the risk that, in the event of a bank’s failure, the Town’s deposits may not be returned to it. Pursuant to provisions of both the Texas Public Funds Investment Act and the Public Funds Investment Policy of the Town, deposits of the Town that exceed the federal depository insurance coverage levels are materially collateralized with securities held by a third party custodian in the Town’s name. Investments, other than investments that are obligations of the U.S. government, its agencies, and instrumentalities, are insured or registered in the Town’s name and held by a third party custodian. Investments The Town’s investment policies are governed by state statutes. The Town’s investment policies further limit state statutes such that eligible investments include the following: 1. Obligations, including letters of credit, of the United States, its agencies, and instrumentalities, including the Federal Home Loan Banks. 2. Direct obligations of the State of Texas, its agencies and instrumentalities or obligations of agencies, counties, cities, and other political subdivisions of this State rated as to investment quality by a nationally recognized investment rating firm of not less than "A" or its equivalent. 3. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 4. Certificates of Deposit and other forms of deposit issued by a depository institution that has its main office or a branch office in Texas. The certificate of deposit must be guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor or secured by obligations in a manner and amount as provided by law. In addition, deposits obtained through a depository institution that has its main office or a branch office in Texas and that contractually agrees to place the funds in federally insured depository institutions in accordance with the conditions prescribed in Section 2256. 01 0(b) of the Public Funds Investment Act are authorized investments. Additionally, funds invested by the Town through a broker that has a main office or branch office in Texas and is selected from a list approved by the Town as required by section 2656.025 of the Public Funds Investment Act or a depository institution that has a main office or branch office in Texas and is selected by the Town are authorized investments if the following conditions are met: a. the broker or depository institution selected by the Town as specified above arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the Town; DRAFT - 3.18.22 239 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 39 b. the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and c. the Town appoints a depository bank, or a clearing broker registered with the Securities and Exchange Commission Rule 15c-3 (17CFR, Section 240 15c3-3) as custodian for the Town with respect to the certificates of deposit issued for account to the Town. 5. Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities. These shall be pledged to the Town of Trophy Club, held in an account in the Town of Trophy Club's name, and deposited at the time the investment is made with the Town of Trophy Club or with a third-party selected and approved by the Town of Trophy Club. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in Texas. A Master Repurchase Agreement, or similar agreement, must be signed by the bank/dealer prior to investment in a repurchase agreement. All repurchase agreement transactions will be on a delivery versus payment basis. Securities received for repurchase agreements must have a market value greater than or equal to 102 percent at the time funds are disbursed. (This section pertains to Sweep Accounts and/or Bond Proceeds) 6. No-Load Money Market Mutual funds that: 1) are registered and regulated by the Securities and Exchange Commission and provide a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 78a) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1), and 2) seek to maintain a stable net asset value of $1.0000 per share. 7. Local government investment pools, which 1) meet the requirements of Chapter 2256.016 of the Public Funds Investment Act, 2) are rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service, and 3) are authorized by resolution or ordinance by the Town Council. In addition, a local government investment pool created to function as a money market mutual fund must mark its portfolio to the market daily and, to the extent reasonably possible, stabilize at a $1.0000 net asset value. DRAFT - 3.18.22 240 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 40 Investment Pools TexPool was established as a trust company with the Treasurer of the State of Texas as trustee, segregated from all other trustees, investments, and activities of the trust company. The State Comptroller of Public Accounts exercises oversight responsibility over TexPool. Oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. The advisory board members review the investment policy and management fee structure. Finally, Standard & Poor’s rate TexPool AAAm. As a requirement to maintain the rating, weekly portfolio information must be submitted to Standard & Poor’s, as well as to the office of the Comptroller of Public Accounts for review. At September 30, 2021, the fair value of the position in TexPool approximates fair value of the shares. There were no limitations or restrictions on withdrawals. Texas CLASS is a local government investment pool emphasizing safety, liquidity, convenience, and competitive yield. Since 1996, Texas CLASS has provided Texas public entities a safe and competitive investment alternative. Texas CLASS invests only in securities allowed by the Texas Public Funds Investment Act. The pool is governed by a board of trustees, elected annually by its participants. Texas CLASS is rated ‘AAAm’ by Standard and Poor’s Ratings Services. The ‘AAAm’ principal stability fund rating is the highest assigned to principal stability government investment pools and is a direct reflection of Texas CLASS’s outstanding credit quality and management. At September 30, 2021, the fair value of the position in Texas CLASS approximates fair value of the shares. There were no limitations or restrictions on withdrawals. Interest rate risk Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the Town manages its exposure to declines in fair values by limiting the maximum maturity length of investments to three years. As of September 30, 2021, the Town had the following investments: Investment Maturities (in Years) Investment Type Fair Value Less than 1 year Texas CLASS 2,180,747$ 2,180,747$ TexPool 2,409,513 2,409,513 Total 4,590,260$ 4,590,260$ DRAFT - 3.18.22 241 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 41 Credit risk The Town’s investment policy limits investments to obligations of the United States, State of Texas, or their agencies and instrumentalities with an investment quality rating of not less than “A” or its equivalent, by a nationally recognized investment rating firm. Other obligations must be unconditionally guaranteed (either express or implied) by the full faith and credit of the United States Government or the issuing U.S. agency and investment pools with an investment quality not less than AAA or AAAm, or equivalent, by at least one nationally recognized rating service. As of September 30, 2021, all of the Town’s purchased investments in U.S. Agencies Obligations were rated AA+, AAA and Aaa by Standard & Poors, Fitch and Moody’s, respectively Concentration of credit risk The concentration of credit risk is the risk of loss that may be caused by the Town’s investment in a single issuer. The Town’s investment policy states that the investment portfolio shall be diversified so that potential losses on individual issuers will be minimized. At September 30, 2021, the Town’s investments are 100% in investment pools. Fair Value of Investments The Town measures and records its investments using, as appropriately, fair value measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize a three‐tiered fair value hierarchy as follows:  Level 1: Quoted prices for identical investments in active markets;  Level 2: Observable inputs other than those in Level 1; and  Level 3: Unobservable inputs. Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices. At September 30, 2021, the Town had the no investments in the fair value hierarchy. Certain investments that are measured using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts included below approximate net asset value for the applicable external investment pool balances. Additionally, the Town has investments in governmental pools as listed below, which are recorded at amortized cost, and excluded from the fair value hierarchy. DRAFT - 3.18.22 242 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 42 At September 30, 2021, the Town had the following investments: Investments measured at net asset value Texas Class 2,180,747$ Investments measured at amortized cost TexPool 2,409,513 Total investments 4,590,260$ Note 4: Receivables Below is the detail of receivables for the Town’s major and nonmajor funds, including the applicable allowances for doubtful accounts: Storm Debt PID Nonmajor Drainage General Service No. 1 Governmental Utility Total Receivables Property taxes 62,066$ 19,098$ -$ -$ -$ 81,164$ Sales Tax 240,632 - - 121,094 - 361,726 Franchise taxes 39,533 - - - - 39,533 Hotel occupancy - - - 45,457 - 45,457 Special assessments - - 21,789,856 - - 21,789,856 Due from other governments 7,505 - - - - 7,505 Municipal court 62,337 - - - - 62,337 EMS 895,813 - - - - 895,813 Storm drainage - - - - 35,857 35,857 Other 110,137 - - - - 110,137 Gross receivables 1,418,023 19,098 21,789,856 166,551 35,857 23,429,385 Less: allowance for doubtful accounts (847,660) - - - - (847,660) Net receivables 570,363$ 19,098$ 21,789,856$ 166,551$ 35,857$ 22,581,725$ Based on the payment schedule for special assessment receivables, approximately $19,557,000 of the amount reported in the PID No. 1 fund is not expected to be collected within the next year. DRAFT - 3.18.22 243 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 43 Note 5: Capital Assets Capital assets activity for the year ended September 30, 2021, was as follows: Beginning Sales/Ending Balance Additions Disposals Transfers Balance Governmental activities: Capital assets, not being depreciated: Land 10,463,669$ 23,450$ -$ -$ 10,487,119$ Construction in progress 15,007 - - (15,007) - Total capital assets, not being depreciated 10,478,676 23,450 - (15,007) 10,487,119 Capital assets, being depreciated: Buildings 10,655,319 4,600 - - 10,659,919 Improvements other than buildings 64,884,269 31,766 - 15,007 64,931,042 Machinery and equipment 2,558,333 227,354 (227,656) - 2,558,031 Vehicles 1,506,695 221,578 (208,322) - 1,519,951 Water system 5,362,005 - - - 5,362,005 Infrastructure 14,332,062 - - - 14,332,062 Total capital assets, being depreciated 99,298,683 485,298 (435,978) 15,007 99,363,010 Less accumulated depreciation for: Buildings 1,419,169 386,461 - - 1,805,630 Improvements other than buildings 28,469,798 2,238,899 - - 30,708,697 Machinery and equipment 1,875,895 221,010 (214,975) - 1,881,930 Vehicles 1,036,336 146,272 (201,360) - 981,248 Water system 1,673,435 175,123 - - 1,848,558 Infrastructure 6,258,368 362,979 - - 6,621,347 T otal accumulated depreciation 40,733,001 3,530,744 (416,335) - 43,847,410 Total capital assets, being depreciated, net 58,565,682 (3,045,446) (19,643) 15,007 55,515,600 Governmental activities capital assets, net 69,044,358$ (3,021,996)$ (19,643)$ -$ 66,002,719$ Beginning Sales/Ending Balance Additions Disposals Transfers Balance Business-Type activities: Capital assets, being depreciated: Machinery and equipment 24,112$ 12,498$ -$ -$ 36,610$ Improvements 33,365 - - - 33,365 Infrastructure 2,039,766 - - - 2,039,766 Total capital assets, being depreciated 2,097,243 12,498 - - 2,109,741 Less accumulated depreciation for: Machinery and equipment 13,767 2,804 - - 16,571 Improvements 834 3,336 - - 4,170 Infrastructure 278,645 51,083 - - 329,728 Total accumulated depreciation 293,246 57,223 - - 350,469 Total capital assets, being depreciated, net 1,803,997 (44,725) - - 1,759,272 Business-type activities capital assets, net 1,803,997$ (44,725)$ -$ -$ 1,759,272$ DRAFT - 3.18.22 244 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 44 Depreciation expense was charged to the functions/programs of the primary government as follows: Governmental activities: General government 392,136$ Emergency medical services 50,608 Information systems 49,869 Police 114,085 Fire 21,461 Parks and recreation 794,974 Streets (Infrastructure) 2,107,611 Total Governmental Activities Depreciation Expense 3,530,744$ Business-Type activities: Trophy Club Park 6,140$ Storm Drainage Utility 51,083 Total business-type activities 57,223$ Note 6: Long-term Liabilities The following is a summary of changes in the Town’s total long-term liabilities for the year ended September 30, 2021. Beginning Balance Additions Retirements Ending Balance Due Within One Year Governmental Activities: General Obligation Bonds 9,005,000$ -$ 1,505,000$ 7,500,000$ 905,000$ Certificates of Obligation 9,789,000 4,305,000 563,000 13,531,000 1,400,000 Special Assessment Bonds 23,985,000 - 1,340,000 22,645,000 1,233,000 Bond Premiums 3,872,927 297,691 371,810 3,798,808 - Total bonds payable 46,651,927 4,602,691 3,779,810 47,474,808 3,538,000 Compensated Absences 345,989 297,365 (256,661) 386,693 339,407 Total Government Activities 46,997,916$ 4,900,056$ 3,523,149$ 47,861,501$ 3,877,407$ Business-Type Activities: Certificates of Obligation 670,000$ -$ 160,000$ 510,000$ 165,000$ Bond Premiums 12,522 4,018 8,504 - Total bonds payable 682,522 - 164,018 518,504 165,000 Total Business-Type Activities 682,522$ -$ 164,018$ 518,504$ 165,000$ DRAFT - 3.18.22 245 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 45 The Town intends to retire all of its governmental activities general long-term liabilities, plus accrued interest, from property taxes and other current revenues from the debt service fund as has been done in prior years. The special assessment bonds are expected to be liquidated from the PID No. 1 fund. The general fund has typically been used to liquate the liability for compensated absences for governmental activities. The proprietary fund type long-term debt will be repaid, plus accrued interest, from operating revenues of the respective fund. General obligation bonds The Town issues general obligation bonds and certificates of obligations to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business‐type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the Town. General obligation bonds and certificates of obligation outstanding at September 30, 2021, are as follows: Governmental Activities Interest Rate (%) Final Maturity Original Borrowing Outstanding at Year-End General Obligation Bonds: Refunding 2.18 2025 2,030,000$ 950,000$ Improvements 2.00-3.00 2036 5,245,000 4,065,000 Refunding 1.16 2030 3,550,000 2,485,000 7,500,000$ Certificate of Obligations: Combination Tax and Revenue Series 2004 3.50-4.75 2024 650,000 101,000 Certificates of Obligation Series 2013 2.50-3.25 2028 1,300,000 750,000 Certificates of Obligation Series 2014 2.00-4.00 2034 2,500,000 1,790,000 Certificates of Obligation Series 2016 2.00-4.00 2036 4,210,000 3,405,000 Certificates of Obligation Series 2017 2.50-3.00 2037 4,445,000 3,180,000 Certificates of Obligation Series 2021 2.00-4.00 2041 4,305,000 4,305,000 13,531,000$ Business-type Activities Interest Rate (%) Final Maturity Original Borrowing Outstanding at Year-End Certificates of Obligation Series 2013 2.50-3.00 2024 1,700,000$ 510,000$ 510,000$ DRAFT - 3.18.22 246 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 46 Special assessment bonds The Town also issued special assessment debt in 2015 to provide funds for improvements within Trophy Club PID No. 1 area. These bonds will be repaid from special assessments levied on the property owners benefiting from this construction. Those amounts, including interest, are 100% pledged to pay the scheduled principal and interest payments on the special assessment bonds. The Town is not obligated to pay the bonds from any funds raised from taxation or from any other revenues available to the Town. Governmental Activities Interest Rate (%) Final Maturity Original Borrowing Outstanding at Year-End Special Assessment: Special Assessment Revenue Refunding-Series 2015 2.00-4.00 2033 26,154,979$ 22,645,000$ 22,645,000$ The debt service requirements for the Town’s bonds are as follows: Year Ended September 30, Principal Interest Total Requirements Principal Interest Total Requirements 2022 3,538,000$ 175,760$ 3,713,760$ 165,000$ 12,194$ 177,194$ 2023 3,357,000 153,611 3,510,611 170,000 7,588 177,588 2024 2,949,000 136,627 3,085,627 175,000 2,625 177,625 2025 3,072,000 121,820 3,193,820 - - - 2026 3,018,000 106,546 3,124,546 - - - 2027-2031 14,078,000 371,858 14,449,858 - - - 2032-2036 12,389,000 163,800 12,552,800 - - - 2037-2041 1,275,000 8,800 1,283,800 - - - Total 43,676,000$ 1,238,822$ 44,914,822$ 510,000$ 22,407$ 532,407$ Governmental Activities Business-type Activities Note 7: Interfund Transactions Due to/from other funds The composition of interfund balances as of September 30, 2021, is as follows: Receivable Fund Payable Fund Amount General Fund PID No. 1 29,785$ 29,785$ DRAFT - 3.18.22 247 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 47 The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Advances from/to other funds: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Fund 386,503$ 386,503$ The amount payable to the general fund relates to a working capital loan made to a nonmajor governmental fund. None of the balance is scheduled to be collected in the subsequent year. Interfund transfers The composition of interfund transfers for the year ended September 30, 2021, is as follows: Transfer Out:General Capital Projects Nonmajor Governmental Funds Storm Drainage Utility Fund Total General Fund -$ 500,000$ 30,153$ -$ 530,153$ Debt Service Fund - - - 176,463 176,463 Nonmajor Governmental Funds 96,082 - - - 96,082 Storm Drainage Utility Fund 40,000 - - - 40,000 Nonmajor Enterprise Fund 20,000 - - - 20,000 Total 156,082$ 500,000$ 30,153$ 176,463$ 862,698$ Transfer In: Transfers were primarily used to support debt service, capital expenditures, and to transfer funds to the general fund for administrative costs. Note 8: Risk Management The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; business interruption; errors and omissions; injuries to employees; employee health benefits; and other claims of various natures. The Town participates in the Texas Municipal League Intergovernmental Risk Pool (Pool) which provides protection for risks of loss. Premiums are paid to the Pool that retains the risk of loss beyond the Town’s policy deductibles. Any losses reported but unsettled or incurred and not reported, are believed to be insignificant to the Town’s basic financial statements. For the last three years, there have been no significant reductions of insurance coverage or insurance settlements in excess of insurance coverage. DRAFT - 3.18.22 248 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 48 Note 9: Contingencies Litigation The Town is involved in lawsuits with other parties from time to time. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Town’s legal counsel, the resolution of these matters will not have a material adverse effect on the financial condition of the Town. Federal Grant Programs The Town participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit Act as amended. Accordingly, the Town’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Town anticipates such amounts, if any, will be immaterial Note 10: Defined Benefit Pension Plan Plan Description The Town participates as one of 895 plans in the defined benefit cash-balance pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for employees of Texas participating cities. The TMRS Act places the general administration and management of TMRS with a six-member, Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly available Comprehensive Annual Financial Report (Annual Report) that can be obtained at tmrs.com. All eligible employees of the Town are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS. At retirement, the Member’s benefit is calculated based on the sum of the Member’s contributions, with interest, and the city-financed monetary credits with interest. The retiring Member may select one of seven monthly benefit payment options. Members may also choose to receive a portion of their benefit as a lump sum distribution in an amount equal to 12, 24 or 36 monthly payments, which cannot exceed 75% of the total Member contributions and interest. DRAFT - 3.18.22 249 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 49 The plan provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Plan provisions for the Town were as follows: Member Deposit Rate 7% City Matching Ratio 2 to 1 Updated Service Credit 100% Transfers Annuity Increases to Retirees 30% CPI-U since retirement date Vesting 5 years Service Retirement Eligibilities 5 years/age 60, 20 years/any age Employees covered by benefit terms At the December 31, 2020 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 47 Inactive employees entitled to but not yet receiving benefits 108 Active employees 78 233 Contributions Member contribution rates in TMRS are either 5%, 6% or 7% of the Member’s total compensation, and the Town matching percentages are either 100%, 150% or 200%, both as adopted by the governing body of the Town. Under the state law governing TMRS, the contribution rate for each Town is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The Town’s contribution rate is based on the liabilities created from the benefit plan options selected by the Town and any changes in benefits or actual experience over time. Employees for the Town were required to contribute 7% of their annual compensation during the fiscal year. The contribution rates for the Town were 13.09% and 13.45% in calendar years 2020 and 2021, respectively. The Town’s contributions to TMRS for the year ended September 30, 2021, were $810,363 and were equal to the required contributions. Net Pension Liability The Town’s Net Pension Liability (NPL) was measured as of December 31, 2020, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. DRAFT - 3.18.22 250 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 50 The Total Pension Liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Overall payroll growth 2.75% per year Investment rate of return 6.75% net of pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with the Public Safety table used for males and the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale UMP to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees are used with a 4- year set-forward for males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, for males and females respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in 2019 and first used in the December 31, 2109 actuarial valuation. The post- retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). DRAFT - 3.18.22 251 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 51 The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2021 are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return (Arithmetic) Global Equity 30.00% 5.30% Core Fixed Income 10.00% 1.25% Non-Core Fixed Income 20.00% 4.14% Real Return 10.00% 3.85% Real Estate 10.00% 4.00% Absolute Return 10.00% 3.48% Private Equity 10.00% 7.75% Total 100.00% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that Member and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive Members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. DRAFT - 3.18.22 252 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 52 Changes in Net Pension Liability Total Pension Plan Fiduciary Net Pension Liability (a) Net Position (b) Liability (a) - (b) Balance at December 31, 2019 21,618,605$ 20,227,825$ 2,782,644$ Changes for the year: Service cost 1,044,859 - 1,044,859 Interest (on the Total Pension Liability) 1,466,317 - 1,466,317 Difference between expected and actual experience (142,491) - (142,491) Changes in assumptions - - - Contributions - member - 406,480 (406,480) Contributions - employer - 760,116 (760,116) Net investment income - 1,537,272 (1,537,272) Benefit payments, including refunds of member contributions (835,638) (835,638) - Administrative expense - (9,935) 9,935 Other - (388) 388 Net Changes 1,533,047 1,857,907 (324,860) Balance at December 31, 2020 23,151,652$ 22,085,732$ 1,065,920$ Sensitivity of the Net Position Liability (Asset) to Changes in the Discount Rate The following presents the net pension liability (asset) of the Town, calculated using the discount rate of 6.75%, as well as what the Town’s net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate (5.75%) Discount Rate (6.75%) Discount Rate (7.75%) Net pension liability (asset)4,702,220$ 1,065,920$ (1,868,683)$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in the Schedule of Changes in Fiduciary Net Position, by Participating City/Town. That report may be obtained at trms.com. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: For the year ended September 30, 2021, the Town recognized a pension expense of $406,211. DRAFT - 3.18.22 253 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 53 At September 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between projected and actual investment earnings -$ 572,105$ Changes in actuarial assumptions - 298 Difference in expected and actual economic experience - 123,184 Contributions subsequent to the measurement date 589,600 - 589,600$ 695,587$ $589,600 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability for the year ending 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended September 30, Net Deferred Inflows of Resources 2022 (284,567)$ 2023 (44,296) 2024 (332,346) 2025 (34,378) (695,587)$ Allocation of Pension Items The Town allocates pension items to the governmental activities on the basis of employee payroll funding. The net pension liability is liquidated by the General Fund, Street Maintenance Sales Tax Fund, and Hotel Occupancy Tax Fund. DRAFT - 3.18.22 254 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 54 Note 11: Other Postemployment Benefits (OPEB) A summary of the total OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense of each plan is shown below. Detailed discussion of each plan will follow in this note. Total OPEB Deferred Outflows Deferred Inflows Liability of Resources of Resources OPEB Expense Governmental activities Supplemental Death Benefits Plan 313,840$ 74,592$ 20,957$ 43,502$ Retiree Health Care Plan 67,646 - 5,721 7,082 Total Governmental activities 381,486$ 74,592$ 26,678$ 50,584$ Texas Municipal Retirement System Supplemental Death Benefits Fund Plan Description Texas Municipal Retirement System (TMRS) administers an optional death benefit plan, the Supplemental Death Benefits Fund (SDBF), which operates like a group-term life insurance plan. This is a voluntary program in which participating member cities may elect, by ordinance, to provide supplemental death benefits for their active Members with optional coverage for their retirees. The Town has elected to participate in the SBDF for its active members, including retirees. As the SDBF covers both active and retiree participants with no segregation of assets, the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75). Benefits Provided The death benefit for active Members provides a lump-sum payment approximately equal to the Member’s annual salary (calculated based on the Member’s actual earnings for the 12-month period preceding the month of death). The death benefit for retirees is considered an other postemployment benefit (OPEB) and is a fixed amount of $7,500. Employees Covered by Benefit Terms At the December 31, 2020 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 30 Inactive employees entitled to but not yet receiving benefits 28 Active employees 78 136 DRAFT - 3.18.22 255 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 55 Contributions The Town contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is based on the mortality and service experience of all employees covered by the SDBF and the demographics specific to the workforce of the Town. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. As such, contributions fund the covered active Member and retiree deaths on a pay-as-you-go basis. Due to the SDBF being considered an unfunded OPEB plan, benefit payments are treated as being equal to the Town’s yearly contributions for retirees. The retiree portion of the contribution rates for the Town to the SDBF were 0.02% and 0.06% in calendar years 2020 and 2021, respectively. The Town’s contributions to the SBDF for the year ended September 30, 2021 were $1,144, and were equal to the required contributions. Total OPEB Liability The Town’s Total OPEB Liability was measured as of December 31, 2020, and the Total OPEB Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total OPEB Liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Salary increases 3.50% to 11.50% including inflation Discount rate 2.00% (2.75% in prior year) Retirees' share of benefit- related costs $0 All administrative expenses are paid through the Town’s Pension Trust and accounted for under reporting requirements of GASB Statement No. 68. Salary increases were based on a service- related table. Mortality rates for active members, retirees, and beneficiaries were based the gender- distinct 2019 Municipal Retirees of Texas mortality tables. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements. Mortality rates for disabled annuitants were based on the mortality tables for healthy retirees is used with a 4 year set- forward for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis by Scale UMP to account for future mortality improvements subject to the floor. The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study for the period December 31, 2014 to December 31, 2018. Because the Supplemental Death Benefits Fund is considered an unfunded trust under GASB Statement No. 75, the relevant discount rate for calculating the Total OPEB Liability is based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of the measurement date. DRAFT - 3.18.22 256 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 56 Changes in the Total OPEB Liability: Total OPEB Liability Balance at December 31, 2019 251,655$ Changes for the year Service cost 21,744 Interest on Total OPEB Liability 7,204 Differences between expected and actual experience (12,515) Changes of assumptions 46,896 Benefit payments (1,144) Net changes 62,185 Balance at December 31, 2020 313,840$ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Town, calculated using the discount rate of 2.00%, as well as what the Town’s total OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (1.00%) or 1-percentage- point higher (3.00%) than the current rate: 1% Decrease in 1% Increase in Discount Rate (1.00%) Discount Rate (2.00%) Discount Rate (3.00%) Total OPEB liability 394,822$ 313,840$ 253,506$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2021, the Town recognized OPEB expense of $43,502. At September 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference in expected and actual experience -$ 13,267$ Changes in assumptions 71,962 7,690 Contributions made subsequent to measurement date 2,630 - 74,592$ 20,957$ DRAFT - 3.18.22 257 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 57 The Town reported $2,630 as reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Total OPEB Liability for the year ending September 30, 2022. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended September 30, Net Deferred Outflows of Resources 2022 14,554$ 2023 13,636 2024 12,407 2025 9,862 2026 546 51,005$ Retiree Health Care Plan Plan Description The Town offers retired employees and their dependents the option to retain health, dental, and vision insurance coverage under the Town’s insurance carrier until the age 65 through a single employer defined benefit plan. The Town does not make a direct contribution for retiree medical coverage. The retirees participate in the same plan as active employees. This effect on cost is considered to be an implicit rate subsidy. To be eligible for retiree health plan benefits, retired employees must be at least age 55 and have 10 years of service with the Town. The plan does not issue a separate report. Benefit provisions for retirees are not mandated by any form of employment agreement and the continued provision of these benefits is based entirely on the discretion of the Town Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. Benefits Provided Retiree medical coverage levels for retirees are the same plans and benefits for all active employees in accordance with the terms and conditions of the Town’s current health plan. Premiums for the retiree health plans are 195% of the current contribution rate for active employees. The plans themselves are the same as well with regard to benefits and structure with no differentiation. The contributions and coverage continues until the retiree reaches age 65. DRAFT - 3.18.22 258 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 58 Employees Covered by Benefit Terms At September 30, 2021, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits - Active employees 67 67 Total OPEB Liability The Town’s Total OPEB Liability was measured as of September 30, 2021, and the Total OPEB Liability was determined by an actuarial valuation as of September 30, 2020. Actuarial assumptions: The Total OPEB Liability in the September 30, 2020 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Salary increases 3.50%, including inflation Discount rate 2.25% Retirees' share of benefit- related costs Retiree pays a 195% of the active employee monthly contribution rate for medical/ dental/vision coverage Health-care cost trend rates Level 4.50% Mortality rates were based on RPH-2014 Total Table with Projection MP-2019. Because the Retiree Health Care Plan is considered an unfunded trust under GASB Statement No. 75, the relevant discount rate for calculating the Total OPEB Liability is based on the Bond Buyer GO- Bond 20 index as of the measurement date. DRAFT - 3.18.22 259 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 59 Changes in the Total OPEB Liability: Total OPEB Liability Balance at September 30, 2020 59,587$ Changes for the year Service cost 6,570 Interest on Total OPEB Liability 1,489 Benefit payments - Net changes 8,059 Balance at September 30, 2021 67,646$ Rate Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the Town, calculated using the discount rate of 2.25%, as well as what the Town’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.25%) or 1-percentage- point higher (3.25%) than the current rate: 1% Decrease in 1% Increase in Discount Rate (1.25%) Discount Rate (2.25%) Discount Rate (3.25%) Total OPEB liability 75,894$ 67,646$ 60,244$ The following presents the total OPEB liability of the Town, calculated using the healthcare cost trend rate of 4.5%, as well as what the Town’s total OPEB liability would be if it were calculated using a trend rate that is 1-percentage-point lower (3.5%) or 1-percentage- point higher (4.5%) than the current rate: 1% Decrease in Healthcare 1% Increase in Trend Rate (3.50%) Trend Rate (4.50%) Trend Rate (5.50%) Total OPEB liability 57,669$ 67,646$ 79,634$ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2021, the Town recognized OPEB expense of $7,082. DRAFT - 3.18.22 260 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 60 At September 30, 2021, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: -$ Deferred Outflows of Resources Deferred Inflows of Resources Difference in expected and actual experience -$ 890$ Changes in assumptions - 4,831 -$ 5,721$ Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended September 30, Net Deferred Inflows of Resources 2022 (977)$ 2023 (977) 2024 (977) 2025 (977) 2026 (977) Thereafter (836) (5,721)$ Allocation of OPEB Items The Town allocates OPEB items to the governmental activities on the basis of employee payroll funding. The total OPEB liability is liquidated by the General Fund, Street Maintenance Sales Tax Fund, and Hotel Occupancy Tax Fund. Note 12: Deferred Compensation Plan The Town has established a single-employer defined contribution, deferred compensation plan (457 Plan) in accordance with Internal Revenue Code, Section 457(b). The 457 Plan is available to all full-time employees of the Town. The 457 Plan is administered by ICMA Retirement Corporation doing business as MissionSquare Retirement. Benefit provisions are contained in the plan document and were established and can be amended by action of the Town Council. All 457 Plan assets and income are held in trust for the exclusive benefit of participants and their beneficiaries; therefore, it is not reported in the financial statements of the Town. The 457 Plan permits employees to defer a portion of their salaries until future years. The benefits of the 457 Plan are not available to employees until termination, retirement, or unforeseeable emergency. Benefits are available to employee's beneficiaries in case of death. The Town does not contribute to the 457 Plan. DRAFT - 3.18.22 261 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 61 Note 13: Operating Leases Receivable The Town leases space on its elevated storage tower to three telecommunication companies for antenna sites. All of the telecommunication companies have the automatic renewals of the lease for additional periods of five years with increased rental payments. The amount received for rental payments for the year ended September 30, 2021 amounted to $90,856. The future minimum rental payments receivable are as follows: Year Ended September 30, Future Minimum Rental Amounts 2022 29,939$ 2023 47,234 2024 48,318 2025 49,428 2026 50,565 2027-2031 270,847 2032-2036 303,636 2037-2041 340,571 2042-2046 132,894 1,273,432$ Note 14: Tax Abatements The Town enters into tax abatement agreements with local businesses under Chapter 380 of the Texas Local Government Code. The Town has the authority under both Article III, Section 52-a of the Texas Constitution and Chapter 380 to make public funds available for the purposes of promoting local economic development and stimulating business and commercial activity with the Town. The Town offers individual incentive packages to attract new business to the Town. Abatements may be granted by Town Council resolution to companies or developers agreeing to relocate to the Town or to establish a new business in the Town. As part of the agreements, the Town agrees to refund a portion of incremental Local Sales and Use Tax, Type B Sales and Use Tax, and/or Property Taxes after confirmation of payment. The agreements entered into by the Town include clawback provisions should the recipient of the tax abatement fail to fully meet its commitments, such as annual sales levels or appraised values of real and personal property located on the project site. As a part of these agreements, the Town may also provide Developers financial assistance for Developer’s expenditures made towards the Project. DRAFT - 3.18.22 262 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 62 In addition to tax abatements, the Town occasionally makes additional commitments in its economic development incentive agreements. The following additional commitments have been made:  The Town has agreed to provide a loan of $200,000 to fund certain permanent improvements to a building related to a qualified project. The loan is to be paid back with interest of 2% calculated annually within four years of the date the Certificate of Occupancy is issued. The current loan amount is the note receivable balance in the 4B Economic Development Corporation. For the fiscal year ended September 30, 2021, the Town has two open tax abatement agreements and abated the following amounts under these agreements: Open Agreements - Type of Tax Abatement Amount of Taxes Abated during the Fiscal Year Town of Trophy Club Property Taxes 103,046$ Sales Taxes 24,883 4B Economic Corporation Sales Taxes - 127,929$ Note 15: 4B Economic Development Corporation (4B) The 4B Economic Development Corporation (4B) is financed with a voter approved half-cent Town sales tax, to aid, promote and further the economic development within the Town. Cash and Investments Cash and cash equivalents for the 4B as of September 30, 2021, consist of and are classified in the accompanying financial statements as follows: Statement of net position Cash and cash equivalents 358,655$ Total cash and cash equivalents 358,655$ DRAFT - 3.18.22 263 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 63 Investments Because the Town provides investment services for the 4B, the Town adheres to its investment policy and all state statutes when investing available cash for the Town. The 4B’s investments balances at September 30, 2021 were $309,829 and were in held in TexPool. Note Receivable In connection with an economic development incentive agreement, as noted above, 4B has agreed to provide a loan of $200,000 to fund certain permanent improvements to a building related to a qualified project. The loan is to be paid back with interest of 2% calculated annually within four years of the date the Certificate of Occupancy is issued. Scheduled note receivable payments are as follows: Year Ended September 30, Future Minimum Note Receivable Amounts 2022 50,000$ 2023 50,000 2024 50,000 2025 50,000 Total 200,000$ Capital Assets Capital asset activity for the year ended September 30, 2021, is as follows: Beginning Ending Balance Additions Deletions Balance Component Unit activities Capital assets, not being depreciated: Land 2,538,765$ -$ -$ 2,538,765$ Total capital assets, not being depreciated 2,538,765 - - 2,538,765 Capital assets, being depreciated: Infrastructure 367,960 - - 367,960 Total capital assets, being depreciated 367,960 - - 367,960 Less accumulated depreciation for: Infrastructure 32,708 24,531 - 57,239 Total accumulated depreciation 32,708 24,531 - 57,239 Total capital assets, being depreciated, net 335,252 (24,531) - 310,721 Total capital assets 2,874,017$ (24,531)$ -$ 2,849,486$ DRAFT - 3.18.22 264 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 64 Depreciation expense charged to the 4B component unit was $24,531. Long-term Debt A summary of long-term debt transactions, including current portion, for the year ended September 30, 2021, is as follows: Beginning Balance Additions Retirements Ending Balance Due Within One Year Component Unit Activities Sales Tax Revenue Bonds 2,175,000$ -$ 110,000$ 2,065,000$ 110,000$ Bond Discounts (19,876) - (1,333) (18,543) - Total bonds payable 2,155,124 - 108,667 2,046,457 110,000 Total Component Unit Activities 2,155,124$ -$ 108,667$ 2,046,457$ 110,000$ Sales Tax Revenue Bonds 4B issued sales tax revenue bonds to provide funds for purchasing land within the Town to be used to promote new or expanded business enterprises including for entertainment, convention, tourist, sports and exhibition facilities, amphitheaters, concert halls, parks, open space, restaurants, retail, parking facilities, public safety facilities and related roads, street and water and sewer facilities and improvements. Sales tax revenue bonds outstanding at September 30, 2021, are as follows: Component Unit Activities Interest Rate (%) Final Maturity Original Borrowing Outstanding at Year-End Sales Tax Revenue Bonds, Taxable Series 2015 1.00-4.75 2035 2,690,000$ 2,065,000$ 2,690,000$ 2,065,000$ The debt service requirements for the sales tax revenue bonds are as follows: Year Ended September 30, Principal Interest Total Requirements 2022 110,000$ 90,258$ 200,258$ 2023 115,000 86,518 201,518 2024 120,000 82,263 202,263 2025 125,000 77,463 202,463 2026 130,000 72,213 202,213 2027-2031 740,000 273,300 1,013,300 2032-2036 725,000 88,113 813,113 Total 2,065,000$ 770,128$ 2,835,128$ Component Unit Activities DRAFT - 3.18.22 265 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 65 The following is a summary of pledged revenues of 4B for the year ended September 30, 2021: Revenue Pledged Total Pledged Revenue Current Year Debt Service Requirements Percentage Portion of Pledged Revenue Stream Remaining Principal and Interest Period Revenue Will Not Be Available For Other Purposes .5% sales and use tax $ 669,026 $ 204,268 30.5% $ 2,835,128 Until 2035 Note 16: Restatement of Prior Year Financial Statements An error correction was made relating to the presentation of two of the Town’s component units, Tax Increment Reinvestment Zone No. 1 (TIRZ No. 1) and Crime Control and Prevention District (CCPD), as identified below. The component units were previously reported as discrete and were corrected to a blended presentation. The following financial statement line items for the year ended September 30, 2021, were affected by the error correction: Government-wide Governmental Component Activities Units Net Position, Beginning of Year, as Previously Reported 63,204,419$ 944,196$ Adjustment applicable to prior years: Correction of Reporting Entity Tax Increment Reinvestment Zone No. 1 (354,812) 354,812 Crime Control and Prevention District 222,811 (222,811) Subtotal (132,001) 132,001 Net Position, Beginning of Year, as Restated 63,072,418$ 1,076,197$ The correction of error above had an impact on change in net position for the prior year as follows: increase change in net position by approximately $260,000 for governmental activities and decrease change in net position by approximately $260,000 for component units. DRAFT - 3.18.22 266 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2021 66 Governmental Funds Nonmajor Governmental Funds Fund Balances, Beginning of Year, as Previously Reported 2,148,712$ Adjustment applicable to prior years: Correction of Reporting Entity Tax Increment Reinvestment Zone No. 1 (354,812) Crime Control and Prevention District 222,811 Subtotal (132,001) Fund Balances, Beginning of Year, as Restated 2,016,711$ The correction of error impacted net change in fund balances for the prior year as follows: increase change in fund balance by approximately $260,000 for the nonmajor governmental funds. DRAFT - 3.18.22 267 DRAFT - 3.18.22 268 Required Supplementary Information (Unaudited) DRAFT - 3.18.22 269 DRAFT - 3.18.22 270 Town of Trophy Club, Texas Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – General Fund For the Year Ended September 30, 2021 67 Original Final Variance with Budget Budget Actual Final Budget Revenues Property tax 7,220,000$ 7,220,000$ 7,396,475$ 176,475$ Sales tax 1,110,000 1,110,000 1,383,994 273,994 Franchise and local taxes 852,816 852,816 869,212 16,396 License and permits 235,000 235,000 284,500 49,500 Intergovernmental 955,031 1,040,910 1,363,876 322,966 Charges for services 788,029 788,029 1,424,580 636,551 Fines and forfeitures 282,600 282,600 328,220 45,620 Investment income 72,000 72,000 29,353 (42,647) Other revenue 122,104 122,104 28,680 (93,424) Total Revenues 11,637,580 11,723,459 13,108,890 1,385,431 Expenditures Current: General government 173,182 173,932 153,888 20,044 Manager's office 1,010,690 872,190 973,427 (101,237) Human resources 322,612 323,362 287,521 35,841 Finance 534,922 548,293 528,002 20,291 Information services 655,957 655,957 595,432 60,525 Legal 126,350 126,350 118,756 7,594 Municipal court 75,889 76,639 47,930 28,709 Police 2,507,343 2,818,042 2,843,717 (25,675) Fire 1,381,839 1,445,298 1,357,987 87,311 Emergency medical services 1,317,588 1,381,048 1,284,482 96,566 Facilities management 344,702 345,452 450,853 (105,401) Parks and recreation 2,253,821 2,273,040 1,918,606 354,434 Community development 681,405 686,707 526,177 160,530 Tourism - - 197,113 (197,113) Sanitation 226,560 227,010 1,057,653 (830,643) Capital outlay - - 336,942 (336,942) Total Expenditures 11,612,860 11,953,320 12,678,486 (725,166) Excess (Deficiency) of Revenues Over (Under) Expenditures 24,720 (229,861) 430,404 660,265 Other Financing Sources (Uses) Transfers in 91,500 91,500 156,082 64,582 Transfers out (1,000,000) (1,000,000) (530,153) 469,847 Total Other Financing Sources (Uses)(908,500) (908,500) (374,071) 534,429 Net Change in Fund Balance (883,780)$ (1,138,361)$ 56,333 1,194,694$ Fund Balance, Beginning 7,547,423 Fund Balances, Ending 7,603,756$ DRAFT - 3.18.22 271 Town of Trophy Club, Texas Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual – Public Improvement District No. 1 For the Year Ended September 30, 2021 68 Original &Variance with Final Budget Actual Final Budget Revenues Special assessments 2,204,998$ 2,195,144$ (9,854)$ Investment income - 34,638 34,638 Miscellaneous 47,310 - (47,310) Total Revenues 2,252,308 2,229,782 (22,526) Expenditures General government 47,310 47,111 199 Debt Service: Principal 1,340,000 1,340,000 - Interest and fiscal charges 864,998 880,073 (15,075) Total Expenditures 2,252,308 2,267,184 (14,876) Net Change in Fund Balances -$ (37,402)$ (37,402)$ Fund Balances, Beginning 3,971,196 Fund Balances, Ending 3,933,794$ DRAFT - 3.18.22 272 Town of Trophy Club, Texas Schedule of Changes in Net Pension Liability and Related Ratios – Texas Municipal Retirement System 69 Measurement Date December 31, 2014201520162017201820192020Total pension liability:Service cost809,057$ 804,453$ 795,448$ 789,530$ 863,553$ 980,663$ 1,044,859$ Interest (on the Total Pension Liability)970,682 1,053,745 1,113,555 1,173,728 1,263,163 1,354,175 1,466,317 Changes of benefit terms(1,544,038) - - - - - - Difference between expected and actual experience (49,303) (237,279) (471,044) (62,418) (258,925) (3,497) (142,491) Change in assumptions - 368,895 - - - (802) - Benefit payments, including refunds of employee contributions(450,100) (632,921) (450,496) (636,604) (589,161) (566,895) (835,638) Net change in total pension liability (263,702) 1,356,893 987,463 1,264,236 1,278,630 1,763,644 1,533,047 Total pension liability - beginning15,231,441 14,967,739 16,324,632 17,312,095 18,576,331 19,854,961 21,618,605 Total pension liability - ending14,967,739 16,324,632 17,312,095 18,576,331 19,854,961 21,618,605 23,151,652 Plan fiduciary net position:Contributions - employer660,364 658,543 593,840 606,585 633,832 710,975 760,116 Contributions - employee316,613 340,458 329,281 323,389 347,155 384,574 406,480 Net investment income681,774 19,357 912,155 2,061,434 (515,889) 2,642,216 1,537,272 Benefit payments, including refunds of employee contributions(450,100) (632,921) (450,496) (636,604) (589,161) (566,895) (835,638) Administrative expense(7,117) (11,788) (10,296) (10,676) (9,961) (14,914) (9,935) Other(585) (582) (555) (541) (520) (448) (388) Net change in plan fiduciary net position1,200,949 373,067 1,373,929 2,343,587 (134,544) 3,155,508 1,857,907 Plan fiduciary net position - beginning11,915,329 13,116,278 13,489,345 14,863,274 17,206,861 17,072,317 20,227,825 Plan fiduciary net position - ending13,116,278 13,489,345 14,863,274 17,206,861 17,072,317 20,227,825 22,085,732 Net pension liability - ending1,851,461$ 2,835,287$ 2,448,821$ 1,369,470$ 2,782,644$ 1,390,780$ 1,065,920$ Plan fiduciary net position as a percentage of total pension liability87.63%82.63%85.85%92.63%85.99%93.57%95.40%Covered payroll4,523,041$ 4,863,685$ 4,704,011$ 4,619,838$ 4,954,406$ 5,493,911$ 5,722,119$ Net pension liability as a percentage of covered payroll40.93%58.30%52.06%29.64%56.17%25.31%18.63%Other Information:For the 2015 valuation, inflation used was 2.5%, investment rate of return and discount rate used was 6.75% and actuarial studies were updated through December 31, 2014.This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the Town will present information for only those years for which information is available. Information has been determined as of the Town's measurement date (December 31). DRAFT - 3.18.22273 Town of Trophy Club, Texas Schedule of Contributions Texas Municipal Retirement System 70 Fiscal Year Ended September 30, 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution 642,631$ 627,419$ 598,176$ 638,736$ 736,208$ 728,124$ 810,363$ Contribution in relation of the actuarially determined contribution 642,631 627,419 598,176 638,736 736,208 728,124 810,363 Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ Covered payroll 4,617,652$ 4,822,763$ 4,559,463$ 4,911,902$ 5,640,011$ 5,524,768$ 5,985,416$ Contributions as a percentage of covered payroll 13.92% 13.01% 13.12% 13.00% 13.05% 13.18% 13.54% Notes to Required Supplementary Information – TMRS Valuation Date: Notes Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 25 years Asset Valuation Method 10 Year smoothed market; 15% soft corridor Inflation 2.50% Salary Increases 3.50% to 10.5%, including inflation Investment Rate of Return 6.75% Retirement Age Mortality Other Information: Notes This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the City will present information for only those years for which information is available. Information has been determined as of the City's most recent fiscal year-end (September 30). There were no benefit changes during the year. Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Pre-retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projected on a fully generational basis with scale UMP. Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2019 valuation pursuant to an experience study of the period 2014 - 2018 DRAFT - 3.18.22 274 Town of Trophy Club, Texas Schedule of Changes in the Total OPEB Liability and Related Ratios Texas Municipal Retirement System Supplemental Death Benefits Fund 71 Measurement Date December 31, 2017 2018 2019 2020 Total OPEB liability: Service cost 10,164$ 12,386$ 15,383$ 21,744$ Interest (on the Total OPEB Liability)6,033 6,400 7,252 7,204 Difference between expected and actual experience - (887) (4,443) (12,515) Change in assumptions 17,400 (16,237) 46,233 46,896 Benefit payments (924) (991) (1,099) (1,144) Net change in total OPEB liability 32,673 671 63,326 62,185 Total OPEB liability - beginning 154,985 187,658 188,329 251,655 Total OPEB liability - ending 187,658$ 188,329$ 251,655$ 313,840$ Covered employee payroll 4,619,838$ 4,954,406$ 5,493,911$ 5,722,119$ Total OPEB liability as a percentage of covered-employee payroll 4.06%3.80% 4.58%5.48% Notes to Schedule: Changes of Benefit Terms:None Changes of Assumptions: 2016 3.78% 2017 3.00% 2018 4.10% 2019 2.75% 2020 2.00% 1) Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the Town will present information for only those years for which information is available. DRAFT - 3.18.22 275 Town of Trophy Club, Texas Schedule of Changes in the Total OPEB Liability and Related Ratios Retiree Health Care Plan 72 Measurement Date September 30,2018 2019 2020 2021 Total OPEB liability: Service cost 5,179$ 5,389$ 5,389$ 6,570$ Interest (on the Total OPEB Liability)2,019 2,101 2,624 1,489 Difference between expected and actual experience - - (1,194) - Change in assumptions - - (6,481) - Benefit payments - - - - Net change in total OPEB liability 7,198 7,490 338 8,059 Total OPEB liability - beginning 44,561 51,759 59,249 59,587 Total OPEB liability - ending 51,759$ 59,249$ 59,587$ 67,646$ Covered employee payroll 4,911,902$ 5,493,911$ 5,524,768$ 5,985,416$ Total OPEB liability as a percentage of covered-employee payroll 1.05%1.08% 1.08%1.13% Notes to Schedule: Changes of Benefit Terms:None Changes of Assumptions: 2017 4.06% 2018 4.06% 2019 2.25% 2020 2.25% 2021 2.25% 1) Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the Town will present information for only those years for which information is available. DRAFT - 3.18.22 276 Combining and Individual Fund Financial Statements and Schedules (Unaudited) DRAFT - 3.18.22 277 DRAFT - 3.18.22 278 Nonmajor Governmental Funds Special Revenue Funds Hotel Occupancy Tax Fund – This fund is used to account for local hotel and motel occupancy tax receipts, as well as expenses (events). Street Maintenance Sales Tax Fund – Accounts for sales taxes specifically restricted for street improvements. Court Technology Fund – Accounts for court fees specifically restricted for court technology expenses. Court Security Fund – Accounts for court fees specifically restricted for court security expenses. Recreation Programs Fund – Accounts for revenues and expenditures associated with recreational programs. Park Land Dedication Fund – This fund is used to account for park revenues received by and expended by the Town. Grant Fund –This fund is used to account for certain grant monies received by and expended by the Town. Tax Increment Reinvestment Zone No. 1 – Accounts for revenues to be used in the reinvestment zone. Crime Control and Prevention District – Accounts for the funds received from a one-half one percent sales tax, which can be utilized for public safety. DRAFT - 3.18.22 279 Town of Trophy Club, Texas Combining Balance Sheet Nonmajor Governmental Funds September 30, 2021 73 HotelStreetTax Increment Crime ControlOccupancyMaintenance CourtCourt Recreation Park LandReinvestmentandTaxSales Tax TechnologySecurity ProgramsDedication Grant Zone No. 1 PreventionTotalAssetsCash and cash equivalents 1,688,987$ 262,352$ 13,457$ 26,555$ 7,710$ 536,001$ 9,886$ 118,413$ 230,129$ 2,893,490$ Taxes receivable, net 45,457 59,103 - - - - - - 61,991 166,551 Total Assets 1,734,444 321,455 13,457 26,555 7,710 536,001 9,886 118,413 292,120 3,060,041 Liabilities:Accounts payable 7,700 18,554 3,188 - - - - 59,626 17,993 107,061 Advances to other funds - - - - - - - 386,503 - 386,503 Total Liabilities 7,700 18,554 3,188 - - - - 446,129 17,993 493,564 Fund BalancesRestrictedTourism 1,726,744 - - - - - - - - 1,726,744 Public safety - - - - - - 9,886 - 274,127 284,013 Street maintenance - 302,901 - - - - - - - 302,901 Court- - 10,269 26,555 - - - - - 36,824 Parks- - - - - 536,001 - - - 536,001 CommittedRecreation programs- - - - 7,710 - - - - 7,710 Unassigned- - - - - - - (327,716) - (327,716) Total Fund Balances1,726,744 302,901 10,269 26,555 7,710 536,001 9,886 (327,716) 274,127 2,566,477 Total Liabilities and Fund Balances1,734,444$ 321,455$ 13,457$ 26,555$ 7,710$ 536,001$ 9,886$ 118,413$ 292,120$ 3,060,041$ DRAFT - 3.18.22280 Town of Trophy Club, Texas Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2021 74 HotelStreetTax Increment Crime ControlOccupancy Maintenance CourtCourt Recreation Park LandReinvestment andTax Sales Tax Technology Security Programs Dedication Grant Zone No. 1 Prevention TotalRevenuesProperty tax-$ -$ -$ -$ -$ -$ -$ 124,873$ -$ 124,873$ Sales tax- 322,978 - - - - - - 328,432 651,410 Occupancy tax392,660 - - - - - - - - 392,660 Intergovernmental- - - - - - - - 1,4481,448 Charges for services- - - - 6,763 - - - - 6,763 Fines and fees- - 225 8,678 - - - - - 8,903 Investment income919 - - - - 274 - - - 1,193 Other revenue19,934 - - - - 150,000 - - - 169,934 Total Revenues413,513 322,978 225 8,678 6,763 150,274 - 124,873 329,880 1,357,184 ExpendituresCurrent:Court- - 3,188 229 - - - - - 3,417 Police- - - - - - - - 130,208 130,208 Community development- - - - - - 127,930- 127,930 Tourism122,830 - - - - - - - - 122,830 Parks and recreation- - - - 4,115 - - - - 4,115 Public works- 204,633 - - - - - - - 204,633 Capital outlay- - - - - - - - 148,356 148,356 Total Expenditures122,830 204,633 3,188 229 4,115 - - 127,930 278,564 741,489 Excess (Deficiency) of Revenues Over (Under) Expenditures290,683 118,345 (2,963) 8,449 2,648 150,274 - (3,057) 51,316 615,695 Other Financing Sources (Uses)Transfers in- - - - - - - 30,153 - 30,153 Transfers out(94,582) - - (1,500) - - - - - (96,082) Total Other Financing Sources (Uses) (94,582) - - (1,500) - - - 30,153 - (65,929) Net Change in Fund Balances196,101 118,345 (2,963) 6,949 2,648 150,274 - 27,096 51,316 549,766 Fund Balances, Beginning1,530,643 184,556 13,232 19,606 5,062 385,727 9,886 (354,812) 222,811 2,016,711 Fund Balances, Ending1,726,744$ 302,901$ 10,269$ 26,555$ 7,710$ 536,001$ 9,886$ (327,716)$ 274,127$ 2,566,477$ DRAFT - 3.18.22281 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Hotel Occupancy Tax Fund For the Year Ended September 30, 2021 75 Hotel Original &Occupancy Variance with Final Budget Tax Final Budget Revenues Taxes 210,000$ 392,660$ 182,660$ Investment income 5,000 919 (4,081) Miscellaneous 7,500 19,934 12,434 Total Revenues 222,500 413,513 191,013 Expenditures General government 72,045 - 72,045 Tourism 114,883 122,830 (7,947) Capital outlay 175,000 - 175,000 Total Expenditures 361,928 122,830 239,098 Excess (Deficiency) of Revenues Over (Under) Expenditures (139,428) 290,683 430,111 Other Financing Sources (Uses) Transfers out - (94,582) (94,582) Total Other Financing Sources (Uses) - (94,582) (94,582) Net Change in Fund Balance (139,428)$ 196,101$ 335,529$ Fund Balance, Beginning 1,530,643 Fund Balance, Ending 1,726,744$ DRAFT - 3.18.22 282 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Street Maintenance Sales Tax Fund For the Year Ended September 30, 2021 76 Street Original &Maintenance Variance with Final Budget Sales Tax Final Budget Revenues Taxes 262,500$ 322,978$ 60,478$ Total Revenues 262,500 322,978 60,478 Expenditures Public works 223,642 204,633 19,009 Total Expenditures 223,642 204,633 19,009 Net Change in Fund Balance 38,858$ 118,345$ 79,487$ Fund Balance, Beginning 184,556 Fund Balance, Ending 302,901$ DRAFT - 3.18.22 283 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Technology Fund For the Year Ended September 30, 2021 77 Original &Court Variance with Final Budget Technology Final Budget Revenues Fines and fees 2,800$ 225$ (2,575)$ Total Revenues 2,800 225 (2,575) Expenditures Court 2,522 3,188 (666) Total Expenditures 2,522 3,188 (666) Net Change in Fund Balance 278$ (2,963)$ (3,241)$ Fund Balance, Beginning 13,232 Fund Balance, Ending 10,269$ DRAFT - 3.18.22 284 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Court Security Fund For the Year Ended September 30, 2021 78 Original &Court Variance with Final Budget Security Final Budget Revenues Fines and fees 2,000$ 8,678$ 6,678$ Total Revenues 2,000 8,678 6,678 Expenditures Court 1,500 229 1,271 Total Expenditures 1,500 229 1,271 Excess (Deficiency) of Revenues Over (Under) Expenditures 500 8,449 7,949 Other Financing Sources (Uses) Transfers out - (1,500) (1,500) Total Other Financing Sources (Uses)- (1,500) (1,500) Net Change in Fund Balance 500$ 6,949$ 6,449$ Fund Balance, Beginning 19,606 Fund Balance, Ending 26,555$ DRAFT - 3.18.22 285 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Recreation Programs Fund For the Year Ended September 30, 2021 79 Original & Recreation Variance with Final Budget Programs Final Budget Revenues Charges for services 6,000$ 6,763$ 763$ Total Revenues 6,000 6,763 763 Expenditures Recreation 6,000 4,115 1,885 Total Expenditures 6,000 4,115 1,885 Net Change in Fund Balance -$ 2,648$ 2,648$ Fund Balance, Beginning 5,062 Fund Balance, Ending 7,710$ DRAFT - 3.18.22 286 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Park Land Dedication Fund For the Year Ended September 30, 2021 80 Original & Park Land Variance with Final Budget Dedication Final Budget Revenues Charges for services 5,000$ -$ (5,000)$ Investment income - 274 274 Miscellaneous 150,000 150,000 - Total Revenues 155,000 150,274 (4,726) Expenditures Capital outlay 100,000 - 100,000 Total Expenditures 100,000 - 100,000 Net Change in Fund Balance 55,000$ 150,274$ 95,274$ Fund Balance, Beginning 385,727 Fund Balance, Ending 536,001$ DRAFT - 3.18.22 287 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Tax Increment Reinvestment Zone No. 1 Fund For the Year Ended September 30, 2021 81 Tax Increment Original Final Reinvestment Variance with Budget Budget Zone No. 1 Final Budget Revenues Taxes 140,263$ 140,263$ 124,873$ (15,390)$ Total Revenues 140,263 140,263 124,873 (15,390) Expenditures Community development 52,800 71,500 127,930 (56,430) Total Expenditures 52,800 71,500 127,930 (56,430) Excess (Deficiency) of Revenues Over (Under) Expenditures 87,463 68,763 (3,057) (71,820) Other Financing Sources (Uses) Transfers in - - 30,153 30,153 Total Other Financing Sources (Uses) - - 30,153 30,153 Net Change in Fund Balance 87,463$ 68,763$ 27,096$ (41,667)$ Fund Balance, Beginning (354,812) Fund Balance, Ending (327,716)$ DRAFT - 3.18.22 288 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Crime Control and Prevention District Fund For the Year Ended September 30, 2021 82 Crime Control Original &and Variance with Final Budget Prevention Final Budget Revenues Taxes $262,500 328,432$ 65,932$ Intergovernmental - 1,448 1,448 Total Revenues 262,500 329,880 67,380 Expenditures Police 140,398 130,208 10,190 Capital outlay - 148,356 (148,356) Total Expenditures 140,398 278,564 (138,166) Net Change in Fund Balance 122,102$ 51,316$ (70,786)$ Fund Balance, Beginning 222,811 Fund Balance, Ending 274,127$ DRAFT - 3.18.22 289 Discretely Presented Component Unit 4B Economic Development Corporation – to aid, promote and further economic development within the Town. DRAFT - 3.18.22 290 DRAFT - 3.18.22 291 Town of Trophy Club, Texas Balance Sheet Trophy Club 4B Economic Development Corporation September 30, 2021 83 4B Economic Development Corporation Assets Cash and cash equivalents 358,655$ Taxes receivable, net 122,427 Notes receivable 200,000 Total Assets 681,082 Fund Balance Restricted Debt Service 205,012 Economic Development 476,070 Total Fund Balance 681,082$ DRAFT - 3.18.22 292 Town of Trophy Club, Texas Reconciliation of the Balance Sheet to the Statement of Net Position Trophy Club 4B Economic Development Corporation September 30, 2021 84 Amounts reported for governmental activities in the statement of net position are different because: Total fund balance – governmental fund 681,082$ Capital assets, net of accumulated depreciation, used in governmental activities are not financial resources and, therefore, are not reported in the fund. 2,849,486 Interest payable on long-term debt does not require current financial resources, therefore interest payable is not reported as a liability in the governmental funds balance sheet. (7,521) Long-term liabilities and related deferred outflows of resources, including bonds payable and deferred charges on refunding, are not due and payable in the current period and, therefore are not reported in the governmental funds financial statements. (2,046,457) Net position of governmental activities 1,476,590$ DRAFT - 3.18.22 293 Town of Trophy Club, Texas Statement of Revenues, Expenditures, and Changes in Fund Balance Trophy Club 4B Economic Development Corporation For the Year Ended September 30, 2021 85 4B Economic Development Corporation Revenues Sales and mixed beverage taxes $ 669,026 Investment income 22 Total Revenues 669,048 Expenditures Current: Economic Development 149,404 Debt Service: Principal 110,000 Interest and fiscal charges 94,268 Total Expenditures 353,672 Excess of Revenues Over Expenditures 315,376 Fund Balance, Beginning 365,706 Fund Balance, Ending 681,082$ DRAFT - 3.18.22 294 Town of Trophy Club, Texas Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities Trophy Club 4B Economic Development Corporation For the Year Ended September 30, 2021 86 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances – total governmental funds 315,376$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount of deprecation expense recorded in the current period. (24,531) The repayment of the principal of long-term debt consumes the current financial resources of governmental funds, but has no effect on net position. 110,000 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental fund. Amortization of bond discount (1,333) Accrued interest on long‐term debt 881 Change in net position of governmental activities 400,393$ DRAFT - 3.18.22 295 Statistical Section DRAFT - 3.18.22 296 DRAFT - 3.18.22 297 Statistical Section (Unaudited) This part of the Town’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town’s overall financial health. Contents Page(s) Financial Trends .......................................................................................................................... 87-91 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity ........................................................................................................................ 92-95 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity .............................................................................................................................. 96-99 These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information ............................................................................... 100-101 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information ............................................................................................................. 102-103 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. DRAFT - 3.18.22 298 DRAFT - 3.18.22 299 Town of Trophy Club, Texas Net Position by Component Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Table 1 87 Fiscal Year2012201320142015*201620172018**201920202021Governmental ActivitiesNet investment in capital assets50,050,855$ 54,425,735$ 53,586,441$ 27,620,857$ 26,940,643$ 27,125,337$ 51,825,867$ 52,718,444$ 51,061,357$ 27,008,067$ Restricted1,191,411 315,480 564,472 4,035,428 4,433,649 4,676,837 5,478,991 6,112,682 6,821,486 29,052,071 Unrestricted2,158,558 2,896,674 3,119,531 2,279,194 1,995,960 3,414,190 3,594,662 4,107,003 5,321,576 5,265,710 Total Governmental Activities53,400,824$ 57,637,889$ 57,270,444$ 33,935,479$ 33,370,252$ 35,216,364$ 60,899,520$ 62,938,129$ 63,204,419$ 61,325,848$ Business-type ActivitiesNet investment in capital assets-$ 52,848$ 560,931$ 513,930$ 680,146$ 776,097$ 877,048$ 982,997$ $1,121,475 1,240,768$ Restricted- - - - - - - - - - Unrestricted46,866 230,592 (4,845) 163,047 171,755 350,752 633,294 741,325 706,200 1,077,789 Total Business-type Activities46,866$ 283,440$ 556,086$ 676,977$ 851,901$ 1,126,849$ 1,510,342$ 1,724,322$ 1,827,675$ 2,318,557$ Primary GovernmentNet investment in capital assets50,050,855$ 54,478,583$ 54,147,372$ 28,134,787$ 27,620,789$ 27,901,434$ 52,702,915$ 53,701,441$ 52,182,832$ 28,248,835$ Restricted1,191,411 315,480 564,472 4,035,428 4,433,649 4,676,837 5,478,991 6,112,682 6,821,486 29,052,071 Unrestricted2,205,424 3,127,266 3,114,686 2,442,241 2,167,715 3,764,942 4,227,956 4,848,328 6,027,776 6,343,499 Total Primary Government53,447,690$ 57,921,329$ 57,826,530$ 34,612,456$ 34,222,153$ 36,343,213$ 62,409,862$ 64,662,451$ 65,032,094$ 63,644,405$ *The Town implemented GASB Statement No. 68 for the year ended September 30, 2015.** The Town implemented GASB Statement No. 75 for the year ended September 30, 2018. DRAFT - 3.18.22300 Town of Trophy Club, Texas Changes in Net Position Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Table 2 88 Fiscal Year2012201320142015*201620172018**201920202021ExpensesGovernmental activities General government1,984,137$ 1,902,621$ 2,113,664$ 1,955,949$ 2,728,642$ 2,533,298$ 3,398,500$ 3,650,893$ 3,561,521$ 1,381,483$ Manager's office- - - - - - - - - 936,032 Human resources- - - - - - - - - 280,147 Finance- - - - - - - - - 512,144 Information services- - - - - - - - - 647,888 Legal- - - - - - - - - 118,756 Court- - - - - - - - - 49,837 Public safety2,392,798 2,898,737 3,125,577 2,306,609 3,540,703 4,607,380 4,429,744 5,109,461 5,139,151 5,616,921 Facilities management- - - - - - - - - 448,538 Tourism- - - - - - - - - 317,005 Sanitation- - - - - - - - - 1,057,653 PID activities- - - 2,736,000 2,122,901 48,520 2,850 26,875 50,152 - Parks and recreation1,564,660 2,037,590 2,555,844 2,253,982 2,652,384 2,761,053 2,644,329 2,871,283 2,593,588 2,674,646 Community development485,614 599,872 620,209 436,090 640,404 738,659 695,637 717,215 563,312 639,321 Public works (Streets and infrastructure)1,829,799 2,234,140 1,764,396 1,716,531 1,878,119 1,728,809 1,671,692 2,371,290 2,052,018 2,308,861 Water and sewer92 261,106 311,677 319,054 319,054 - - - - - Storm drainage- 227,067 231,370 234,339 234,287 - - - - - Interest on long-term debt498,569 489,337 412,561 469,923 496,019 2,365,059 2,771,762 2,663,286 1,639,671 1,535,312 Total governmental activities expenses8,755,669 10,650,470 11,135,298 12,428,477 14,612,513 14,782,778 15,614,514 17,410,303 15,599,413 18,524,544 Business-type activities Storm Drainage96,488 121,269 103,001 205,331 174,499 120,295 129,722 131,370 93,912 126,163 Trophy Club Park130,185 98,718 134,625 123,445 109,325 116,477 93,677 122,186 229,670 125,692 Total business-type activities expenses226,673 219,987 237,626 328,776 283,824 236,772 223,399 253,556 323,582 251,855 Total Primary Government Expenses8,982,342$ 10,870,457$ 11,372,924$ 12,757,253$ 14,896,337$ 15,019,550$ 15,837,913$ 17,663,859$ 15,922,995$ 18,776,399$ Program RevenuesGovernmental activitiesCharges for services General government-$ -$ -$ -$ -$ -$ -$ -$ -$ 286,695$ Court- - - - - - - - - 110,550 Police- - - - - - - - - 123,942 Fire- - - - - - - - - 1,344,545 Emergency medical services- - - - - - - - - 95,775 Parks and recreation- - - - - - - - - 301,668 Community Development1,128,234 968,285 895,508 702,578 605,558 - - - - 1,775 Sanitation- - - - - - - - - 1,058,213 Public works- - - - - - - - - 9,670 Water and sewer2,040 - - - - - - - - - Other854,349 793,205 783,359 2,669,738 2,593,969 3,705,774 3,982,406 3,266,108 1,797,916 - Operating grants and contributions342,894 952,648 423,960 550,495 141,071 581,633 443,752 1,392,787 2,056,622 37,851 Capital grants and contributions2,682,302 4,793,132 761,196 1,254,997 - - - 2,127,040 - 150,000 Total governmental activities program revenues5,009,819 7,507,270 2,864,023 5,177,808 3,340,598 4,287,407 4,426,158 6,785,935 3,854,538 3,520,684 Business-type activitiesCharges for services Storm Drainage325,380 506,205 550,617 484,874 466,934 596,520 592,322 539,295 430,303 435,798 Trophy Club Park- - - - - - - - 188,708 185,981 Operating grants and contributions- - - - 61,106 - 94,521 - - 4,170 Capital grants and contributions- - - - - - - 3,360 68,146 - Total business-type activities program revenues325,380 506,205 550,617 484,874 528,040 596,520 686,843 542,655 687,157 625,949 Total Primary Government Program Revenues5,335,199$ 8,013,475$ 3,414,640$ 5,662,682$ 3,868,638$ 4,883,927$ 5,113,001$ 7,328,590$ 4,541,695$ 4,146,633$ DRAFT - 3.18.22301 Town of Trophy Club, Texas Changes in Net Position (Continued) Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Table 2 89 Fiscal Year2012201320142015*201620172018**201920202021Net (expense) RevenueGovernmental activities(3,745,850)$ (3,143,200)$ (8,271,275)$ (7,250,669)$ (11,271,915)$ (10,495,371)$ (11,188,356)$ (10,624,368)$ (11,744,875)$ (15,003,860)$ Business-type activities98,707 286,218 312,991 156,098 244,216 359,748 463,444 289,099 363,575 374,094 Total Primary Government Net (expense) Revenue(3,647,143)$ (2,856,982)$ (7,958,284)$ (7,094,571)$ (11,027,699)$ (10,135,623)$ (10,724,912)$ (10,335,269)$ (11,381,300)$ (14,629,766)$ General Revenues And Other Changes In Net PositionGovernmental activitiesTaxes Property taxes4,897,615$ 5,334,140$ 5,955,398$ 7,447,069$ 7,714,564$ 8,269,141$ 8,412,231$ 8,974,426$ $9,347,776 9,940,633$ Sales and mixed beverage taxes754,105 781,054 965,969 1,104,298 1,217,693 1,306,243 1,150,073 1,271,864 1,445,994 2,035,404 Other taxes706,065 828,338 1,020,554 1,027,407 1,255,995 1,376,352 1,486,952 1,581,721 1,238,302 1,261,872 Investment income7,983 7,193 4,973 11,331 65,709 146,015 259,220 512,922 183,858 72,940 Miscellaneous revenues301,269 379,896 185,922 100,202 382,521 908,540 197,567 235,107414,38462,904 Special items- - - - - - - - 882,082 - Transfers64,382 49,644 28,607 35,350 70,206 86,887 87,209 86,937 262,933 (116,463) Total governmental activities 6,731,419 7,380,265 8,161,423 9,725,657 10,706,688 12,093,178 11,593,252 12,662,977 13,775,329 13,257,290 Business-type activitiesInvestment income- - 25 143 914 2,087 7,258 11,818 2,711 325 Special items- - 26,001 - - - - - - - Transfers64,382 49,644 28,607 35,350 70,206 86,887 87,209 86,937 262,933 116,463 Total business-type activities 64,382 49,644 54,633 35,493 71,120 88,974 94,467 98,755 265,644 116,788 Total Primary Government6,795,801$ 7,429,909$ 8,216,056$ 9,761,150$ 10,777,808$ 12,182,152$ 11,687,719$ 12,761,732$ 14,040,973$ 13,374,078$ Change In Net PositionGovernmental activities2,985,569$ 4,237,065$ (109,852)$ 2,474,988$ (565,227)$ 1,597,807$ 404,896$ 2,038,609$ 2,030,454$ (1,746,570)$ Business-type activities163,089 335,862 367,624 191,591 315,336 448,722 557,911 387,854 629,219 490,882 Total Primary Government Change In Net Position3,148,658$ 4,572,927$ 257,772$ 2,666,579$ (249,891)$ 2,046,529$ 962,807$ 2,426,463$ 2,659,673$ (1,255,688)$ *The Town implemented GASB Statement No. 68 for the year ended September 30, 2015.**The Town implemented GASB Statement No. 75 for the year ended September 30, 2018. DRAFT - 3.18.22302 Town of Trophy Club, Texas Fund Balances of Governmental Funds Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) Table 3 90 Fiscal Year2012201320142015201620172018201920202021General FundNonspendable796$ 796$ 796$ 1,816$ 54,397$ 91,278$ 430,977$ 389,687$ 389,112$ 727,449$ Committed228,138 228,138 228,138 228,138 - - - - - - Assigned- - - 200,000 189,475 183,858 182,718 177,130 169,592 - Unassigned2,902,168 2,398,330 2,816,087 3,261,235 3,950,290 4,335,983 4,826,823 5,256,436 6,988,719 6,876,307 Total General Fund3,131,102 2,627,264 3,045,021 3,691,189 4,194,162 4,611,119 5,440,518 5,823,253 7,547,423 7,603,756$ All Other Governmental FundsRestricted:Debt Service94,267 119,722 118,092 118,542 143,174 309,043 262,277 473,670 706,640 4,357,220$ Capital Projects996,425 2,065,759 4,505,273 1,694,546 8,764,936 6,285,515 5,764,419 3,568,072 1,984,646 6,199,646 Municipal court49,962 60,927 46,253 43,422 39,668 37,819 37,155 30,036 32,838 36,824 Public Safety -23,007 93,746 134,265 210,189 71,259 9,886 9,886 9,886 284,013 Street Maintenance75,999 46,700 39,915 65,306 -92,856 29,337 92,457 184,556 302,901 Tourism1,321 87,225 283,481 475,748 564,363 399,883 790,686 1,313,981 1,530,643 1,726,744 Parks - - - - - - 467,425 220,464 385,727 536,001 PID No. 1 - -4,229,068 3,869,425 3,832,851 3,882,225 3,972,188 3,971,196 - Town Anniversary2,114 2,114 2,114 3,497 - - - - -- Committed:Recreation programs - -2,812 3,395 2,269 7,307 3,655 3,028 5,062 7,710 Unassigned257,350 11,517 6,333 6,327 5,017 - - - -(327,716) Total All Other Governmental Funds1,477,438$ 2,416,971$ 5,098,019$ 6,774,116$ 13,599,041$ 11,036,533$ 11,247,065$ 9,683,782$ 8,811,194$ 13,123,343$ DRAFT - 3.18.22303 Town of Trophy Club, Texas Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) Table 4 91 Fiscal Year2012201320142015201620172018201920202021RevenuesTaxes Ad valorem taxes 4,916,886$ 5,330,778$ 5,908,764$ 7,469,912$ 7,724,244$ 8,132,670$ 8,600,999$ 8,967,795$ 9,359,847$ 9,941,321$ Sales and mixed beverage taxes 754,105 781,054 965,969 1,104,298 1,217,694 1,306,243 1,150,073 1,271,864 1,445,994 2,035,404 Franchise taxes 693,722 718,952 772,621 811,052 953,622 888,863 867,446 911,738 850,543 869,212 Occupancy 20,543 108,170 235,796 264,708 302,374 487,489 619,506 669,983 387,759 392,660 Special assessments - - - 1,917,636 1,986,516 2,129,321 2,166,167 2,176,400 2,187,165 2,195,144 Licenses, permits & fees 1,128,234 968,285 904,251 697,378 598,586 333,780 614,931 499,302 479,513 284,500 Intergovernmental 342,894 888,896 133,004 326,195 26,237 581,633 608,910 724,333 2,056,622 1,365,324 Charges for services 670,186 592,146 611,781 293,011 310,735 820,530 767,237 769,962 296,947 1,431,343 Fines & Fees 157,143 171,579 126,111 580,648 362,409 355,504 497,078 312,267 132,877 337,123 Contributions322,536 1,472 - - - - - - - - Investment Income7,983 7,193 4,974 11,330 65,708 146,015 259,213 512,922 183,858 72,940 Grant revenue1,400,252 490,850 61,383 147,691 7,942 - - - - - Miscellaneous82,057 388,894 485,380 100,202 407,418 158,540 715,535 402,894 386,615 212,904 Total revenues10,496,541 10,448,269 10,210,034 13,724,061 13,963,485 15,340,588 16,867,095 17,219,460 17,767,740 19,137,875 ExpendituresCurrentGeneral government1,968,287 1,844,939 1,947,650 2,273,447 2,349,120 2,191,140 2,404,704 3,164,364 2,584,454 973,869 Manager's office- - - - - - - - - 973,427 Human resources- - - - - - - - - 287,521 Finance- - - - - - - - - 528,002 Information services- - - - - - - - - 595,432 Legal- - - - - - - - - 118,756 Court- - - - - - - - - 51,347 PID activities- - - 314,344 81,793 44,984 2,850 26,875 50,152 - Public safety2,408,103 2,905,923 2,918,484 2,896,632 3,187,064 4,117,992 4,441,873 4,872,242 4,977,216 5,616,394 Facilities management- - - - - - - - - 450,853 Tourism- - - - - - - - - 319,943 Sanitation- - - - - - - - - 1,057,653 Public works2,017,548 1,067,962 517,964 516,035 566,927 179,448 340,910 414,938 388,419 204,633 Community development481,473 576,306 587,760 479,477 576,508 582,259 449,178 568,239 491,941 654,107 Water and sewer92 - - - - - - - - - Culture & recreation1,659,656 1,491,496 1,853,811 1,799,204 1,892,065 1,991,571 2,708,827 2,250,599 2,380,448 1,922,721 Debt service Principal885,000 2,294,000 998,000 1,438,000 2,153,974 1,567,004 1,675,350 1,723,652 3,081,206 3,408,000 Interest and fiscal changes496,466 485,784 473,972 2,546,971 3,396,480 2,630,171 2,796,835 2,811,664 1,614,385 1,452,214 Capital outlay1,403,691 237,936 885,436 3,466,307 3,395,509 9,146,919 1,239,065 2,860,040 1,735,016 508,748 Total expenditures11,320,316 10,904,346 10,183,077 15,730,417 17,599,440 22,451,488 16,059,592 18,692,613 17,303,237 19,123,620 Excess (Deficiency) of Revenues Over Expenditures(823,775) (456,077) 26,957 (2,006,356) (3,635,955) (7,110,900) 807,503 (1,473,153) 464,503 14,255 Other Financing Sources (uses)Proceeds from capital lease obligation- - - - - - 264,732 - - - Proceeds from contractual obligations- - 2,500,000 - 4,210,000 - - - - - Sale of general capital assets- - - - - - - - 32,213 - Insurance recoveries- - - - - - - - 27,769 - Proceeds from bonds500,000 1,300,000 600,000 2,030,000 31,399,979 4,445,000 - - 3,550,000 4,305,000 Premium on bonds33,794 50,329 - 5,020,788 128,317 - - - 297,691 Payment to refunded bond escrow agent- - - 2,026,710 29,734,500 - - - 3,485,838 - Transfers in191,878 876,553 55,741 63,350 493,947 993,250 298,457 89,937 264,433 686,235 Transfers out127,496 826,909 27,134 28,000 423,741 906,363 63,817 3,000 1,500 (802,698) Total other financing sources (uses)819,374 3,037,256 3,233,204 4,148,060 71,282,955 6,472,930 627,006 92,937 7,361,753 4,486,228 Net Change In Fund Balances(4,401)$ 2,581,179$ 3,260,161$ 2,141,704$ 67,647,000$ (637,970)$ 1,434,509$ (1,380,216)$ 7,826,256$ 4,500,483$ Debt Service As A Percentage Of Noncapital Expenditures13.93% 26.06%15.83%32.49% 39.08%31.55%30.18%28.65%30.16%26.11% DRAFT - 3.18.22304 Town of Trophy Club, Texas Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) Table 5 92 Less: Total Taxable Total DirectFiscal Real Non Real Tax Exempt Assessed TaxYear Property Property Property Value Rate2012 971,822,347$ 23,862,338$ 54,212,507$ 941,472,178$ 0.53000$ 2013 1,068,605,127 24,460,719 59,911,204 1,033,154,642 0.51854 2014 1,248,215,265 25,845,178 60,160,746 1,213,899,697 0.49930 2015 1,426,754,517 20,304,259 64,382,412 1,382,676,364 0.49000 2016 1,618,577,881 28,301,916 68,622,814 1,578,256,983 0.48400 2017 1,816,191,857 29,805,970 73,301,474 1,772,696,353 0.47300 2018 1,986,456,291 32,335,529 83,492,349 1,935,299,471 0.45144 2019 2,146,374,412 34,488,137 79,947,523 2,100,915,026 0.44644 2020 2,245,060,094 34,337,805 173,637,626 2,105,760,273 0.44644 2021 2,571,479,079 41,659,656 210,421,213 2,402,717,522 0.44644 Source: Denton & Tarrant County Central Appraisal District Certified Roll Note: Total Taxable Assessed Value is not adjusted for tax ceilings. Estimated Market Value DRAFT - 3.18.22305 Town of Trophy Club, Texas Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value) Last Ten Fiscal Years (Unaudited) Table 6 93 TotalTarrant Tarrant Direct &Fiscal Operating/ Debt Total Northwest Trophy Club Denton Trophy Club Tarrant County County Total Total Total OverlappingYear General Service Direct ISD MUD #1 County PID #1 ESD County College Hospital MUD #1 MUD #2 PID #1 ESD Rates2012 0.415013$ 0.114987$ 0.530000$ 1.375000$ 0.175000$ 0.277357$ 0.109250$ 0.264000$ 0.148970$ 0.227897$ 2.994564$ N/A 2.406594$ 3.107474$ 2013 0.403543 0.115000 0.518543 1.375000 0.133390 0.282867 0.104000 0.264000 0.149500 0.227897 2.942300 N/A 2.395410 3.055197 2014 0.384300 0.115000 0.499300 1.452500 0.133390 0.284914 0.087380 0.264000 0.149500 0.227897 2.985984 N/A 2.439094 3.098881 2015 0.380000 0.110000 0.490000 1.452500 0.133390 0.272200 0.077270 0.264000 0.149500 0.227897 2.948860 N/A 2.401970 3.066757 2016 0.374000 0.110000 0.484000 1.452500 0.131140 0.262000 0.072220 0.264000 0.149500 0.227897 2.925360 N/A 2.380720 3.043257 2017 0.363000 0.110000 0.473000 1.452500 0.127220 0.248409 0.074450 0.254000 0.144730 0.227897 2.884309 N/A 2.358359 3.002206 2018 0.341442 0.110000 0.451442 1.490000 0.120210 0.237181 0.068700 0.244000 0.140060 0.224429 2.861593 N/A 2.357323 2.976022 20190.336442 0.110000 0.446442 1.490000 0.116180 0.225574 0.067190 0.234000 0.136070 0.224429 2.825456 N/A 2.339206 2.939885 2020 0.336442 0.110000 0.446442 1.420000 0.112730 0.225278 0.067380 0.234000 0.130170 0.224429 2.204450 N/A 2.269100 2.860429 2021 0.336442 0.110000 0.446442 1.420000 0.105880 0.224985 0.081900 0.229000 0.130170 0.224429 2.197307 N/A 2.283327 2.862806 Source: Denton & Tarrant County Appraisal Districts Overlapping RatesTown of Trophy Club Overlapping Rates DRAFT - 3.18.22306 Town of Trophy Club, Texas Principal Property Taxpayers Current Year and Ten Years Ago (Unaudited) Table 7 94 Percentage ofPercentage ofTaxableTotal Taxable TaxableTotal TaxableAssessedAssessedAssessedAssessedTaxpayerValue Rank Value (1)Value Rank Value (2)NAP Trophy Club LP42,200,000$ 11.76%-$ n/a 0.00%KAGR Trophy Club 2800 LLC/2850 LL22,750,000 20.95%- n/a 0.00%Armore Trophy Club LLC16,600,000 30.69%5,665,875 80.60%Trophy Club 18 LLC16,335,450 40.68%- n/a 0.00%TC Town Center14,328,008 50.60%- n/a 0.00%Quasar Hotels LLC11,214,061 60.47%- n/a 0.00%Oncor Electric Delivery Co9,040,000 70.38%- n/a 0.00%Trophy Club Medical Center LP8,065,320 80.34%6,163,459 40.65%Amore II - Quorum LLC6,993,186 90.29%- n/a 0.00%ClubCorp Golf Tex LP P/S6,479,626 100.27%- n/a 0.00%Regency Centers LP- n/an/a7,094,526 20.75%Goodman Family of Builders LP- n/an/a6,272,995 30.67%BDMR Development LLC- n/an/a6,030,947 50.64%Staandard Pacific of Texas LP- n/an/a5,987,095 60.63%High Trophy Development LLC- n/an/a5,807,077 70.62%Lennar Homes of Texas- n/an/a5,184,902 90.55%Cnl Retmt CRSI Trophy Cl Tx LP- n/an/a17,800,000 11.89%4663 Okeechobee BLVD & Palm Beach Holdings (2002)- n/an/a5,000,000 10 0.53% Totals154,005,651$ 6.40%71,006,876$ 7.53% Source: Denton and Tarrant County Central Appraisal District20212012 DRAFT - 3.18.22307 Town of Trophy Club, Texas Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Table 8 95 Total TaxCollections inFiscal Levy forSubsequentYear Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy2012 4,858,136$ 4,838,092$ 99.59%13,713$ 4,851,805$ 99.87%2013 5,259,719 5,244,699 99.71%7,742 5,252,441 99.86%2014 5,904,591 5,869,976 99.41%26,189 5,896,165 99.86%2015 6,665,433 6,642,558 99.66%14,249 6,656,806 99.87%2016 7,477,394 7,456,542 99.72%13,166 7,469,708 99.90%2017 8,188,616 8,153,915 99.58%10,781 8,164,696 99.71%2018 8,627,946 8,614,737 99.85%2,176 8,616,913 99.87%2019 9,027,118 8,992,174 99.61%34,943 9,027,117 100.00%2020 9,504,473 9,400,652 98.91%21,969 9,422,621 99.14%2021 9,835,286 9,785,993 99.50%- 9,785,993 99.50%Source: Denton County Tax Assessor CollectorTotal Collections to DateFiscal Year of the LevyCollected within the DRAFT - 3.18.22308 Town of Trophy Club, Texas Ratio of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Table 9 96 General Certificates SpecialCertificatesTotal PercentageFiscalObligationof AssessmentCapitalofPrimary of Personal PerYearBonds Obligation Bonds Premium Leases Obligation Premium Government Income (1) Capita201211,505,149$ 634,000$ -$ -$ -$ -$ -$ 12,139,149$ 3.03% 1,348 20139,464,076 1,698,419 - - - 1,743,456 - 12,905,951 2.86% 1,199 20149,085,567 4,212,132 - - - 1,599,038 - 14,896,737 3.07% 1,293 20158,344,695 4,029,431 26,481,000 - - 1,454,619 - 40,309,745 7.62% 3,348 20166,925,000 7,961,000 25,710,479 4,916,763 - 1,275,000 30,200 46,818,442 8.37% 3,762 20176,545,000 12,068,000 25,406,475 4,754,458 - 1,130,000 25,779 49,929,712 8.44% 3,856 201810,640,000 11,415,000 25,285,577 4,457,420 173,280 980,000 21,358 52,972,635 8.06% 3,828 20199,805,000 10,637,000 25,260,000 4,160,382 88,205 825,000 16,939 50,792,526 7.94% 4,106 20209,005,000 9,789,000 23,985,000 3,872,927 - 670,000 12,522 47,334,449 6.98% 3,802 20217,500,000 13,531,000 22,645,000 3,798,808 - 510,000 8,504 47,993,312 7.14% 3,608 (1) Personal Income and population found on Table 15 of the Statistical SectionBusiness-Type ActivitiesGovernmental ActivitiesDRAFT - 3.18.22309 Town of Trophy Club, Texas Ratio of Net General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) Table 10 97 Fiscal YearGeneral Obligation BondsCertificates of ObligationPremium on BondsGross Bonded DebtLess: Amounts Available in Debt Service FundTotalPercentage of Actual Taxable Value of PropertyaPer Capitab201211,505,149$ 634,000$ -$ 12,139,149$ -$ 12,139,149$ 1.29%1,348$ 20139,464,076 1,698,419 - 11,162,495 - 11,162,495 1.08%1,037 20149,085,567 4,212,132 - 13,297,699 - 13,297,699 1.10%1,154 20158,344,695 4,029,431 - 12,374,126 - 12,374,126 0.89%1,028 20166,925,000 7,961,000 4,916,763 19,802,763 - 19,802,763 0.94%1,591 20176,545,000 12,068,000 4,754,458 23,367,458 - 23,367,458 1.05%1,878 201810,640,000 11,415,000 4,457,420 26,512,420 - 26,512,420 1.14%1,916 20199,805,000 10,637,000 4,160,382 24,602,382 - 24,602,382 0.97%1,989 20209,005,000 9,789,000 3,872,927 22,666,927 706,640 21,960,287 0.89%1,764 20217,500,000 13,531,000 3,798,808 24,829,808 423,426 24,406,382 0.92%1,835 a Property values are from table 5.b Populations are from table 12. DRAFT - 3.18.22310 Town of Trophy Club, Texas Direct and Overlapping Governmental Activities Debt As of September 30, 2021 (Unaudited) Table 11 98 EstimatedEstimated Share ofDebt Principal Percentage OverlappingGovernmental Unit Outstanding Applicable DebtDebt repaid with property taxes:Denton County 571,605,000$ 2.08% 11,916,921$ Northwest Independent School District 1,584,718,303 5.32273% 84,350,221 Tarrant County 213,675,000 0.07% 159,926 Tarrant County College District255,995,000 0.00% - Tarrant County Hospital District 26,660,000 0.07% 19,954 Trophy Club MUD #124,015,000 0.60% 143,050 Subtotal, overlapping debt 2,676,668,303$ 96,590,072$ Town of Trophy Club, direct debt21,031,000 100.00% 21,031,000 Total Direct and Overlapping Debt Principal 2,697,699,303$ 117,621,072$ Source: Most recent Texas Municipal Reports (TMR) published by the Municipal Advisory Council of Texas.Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of Trophy Club. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. DRAFT - 3.18.22311 Town of Trophy Club, Texas Pledged Revenue Coverage Last Ten Fiscal Years (Unaudited) Table 12 99 SpecialFiscal Assessment Annual TimesYear Collections Requirement (a) Coverage20202,187,165$ 2,180,573$ 1.0020212,195,144 2,220,0730.99Note:(a) Includes Principal and InterestSpecial Assessment BondsSpecial assessment bonds pledged-revenue coverage presented starting with fiscal year 2020. DRAFT - 3.18.22312 Town of Trophy Club, Texas Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) Table 13 100 YearEstimated PopulationaTotal HouseholdsaMedian Household IncomebTotal Personal Income Unemployment Ratec20129,0053,379 118,595$ 400,732,505$ 6.10 201310,7603,680 122,539 450,943,520 5.65 201411,5253,891 124,593 484,791,363 4.72 201512,0404,153 127,391 529,054,823 3.88 201612,4464,342 128,750 559,032,500 3.66 201712,9504,435 133,457 591,881,795 3.38 201813,8384,723 139,156 657,233,788 3.40 201912,3694,490 142,483 639,748,670 3.10 202012,451 4,600 147,477 678,394,200 3.10 202113,301 4,555 147,477 671,757,735 6.60 Sources: a Estimated population using residential water connectionsb United States Census BureaucFederal Bank of St. Louis Economic Research; Denton and Tarrant Counties' data averaged 2018. DRAFT - 3.18.22313 Town of Trophy Club, Texas Principal Employers Current Year and Ten Years Ago (Unaudited) Table 14 101 EmployerEmployeesPercentage of Total Town EmploymentEmployerEmployeesPercentage of Total Town EmploymentNorthwest Independent School District 40420.20% Northwest Independent School District 38832.61%Baylor Medical Center at Trophy Club2307.50% Trophy Club Country Club20016.81%Trophy Club Country Club15011.50% Baylor Medical Center at Trophy Club20016.81%Town of Trophy Club11849.20% Tom Thumb756.30%Tom Thumb1407.00% Town of Trophy Club 1008.40%HG Sply Co.1015.05% Cristina's Mexican Restaurant554.62%Fellowship United Methodist Church512.55% Merryhill Preschool242.02%Premier Academy - Trophy Club351.75% Premier Academy - Trophy Club423.53%Trophy Lake Academy301.50% Fellowship United Methodist Church433.61%Church at Trophy Club Lake321.60% Trophy Lake Academy352.94%Total1,35767.85%1,16297.65%(1) Includes Full Time, Part Time, and Seasonal20212012 DRAFT - 3.18.22314 Town of Trophy Club, Texas Full-time Equivalent Town Government Employees By Function/Program Last Ten Fiscal Years (Unaudited) Table 15 102 Function2012 2013 2014 2015 20162017 2018 2019 2020 2021General Government and Adminstration 13121413141314141312Public Safety23 28 31 32 33 33 34 41 41 38Streets5554442333Parks and Recreation16 16 17 17 17 16 17 14 14 16Community Development5 6 76 6 6 6 5 4 4Total62677472737373777573Source: Departmental records DRAFT - 3.18.22315 Town of Trophy Club, Texas Operating Indicators by Function/Program Last Ten Fiscal Years (Unaudited) Table 16 103 Function2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Public Safety Police Number of stations1 1 1 1 1 1 2 2 1 1 Number of police personnel15 18 23 25 25 26 26 24 25 23 Number of arrests102 101 82 125 145 148 130 275 157 158 Number of traffic stops2,602 2,443 2,004 2,912 3,635 2,922 4,262 5,397 3,106 3,206 Fire Number of stations1 1 1 1 1 1 1 1 1 1 Number of fire personnel14 14 15 15 16 17 18 17 17 18 Number of calls answered845 945 907 868 898 868 858 871 965 981 Developmental Miles of streets43 43 43 43 43 43 43 52 52 52 Parks/Recreational Changes Parks6 6 6 6 6 6 6 6 6 6 Park acreage1,039 1,039 1,039 1,039 1,039 1,039 1,039 1,039 1,039 1,039 DRAFT - 3.18.22316 DRAFT - 3.18.22 317 DRAFT - 3.18.22 318 Page 1 of 2 To: Mayor and Town Council From: Wade Carroll, Town Manager CC: Leticia Vacek, Town Secretary Mike Erwin, Finance Manager Re: Resolution approving us of ARPA Funds, Town Council Meeting March 22, 2022 Agenda Item: Consider and take appropriate action regarding a Resolution of the Town Council approving the proposed use of the American Rescue Plan Act (ARPA) funds received by the Town of Trophy Club. (W. Carroll). Strategic Link: Administrative & Financial Services – Exercise fiscal discipline in all Town operations. Background and Explanation: The Town is scheduled to receive $3,085,182.86 over two tranches. The Town received $1,542,591.43 in September of 2021 and should receive another $1,542,591.43 in September of 2022. Shown below is the proposed use of the funds ARPA Funds 3,085,182.86$ Drainage Wo rk (2,300,000.00)$ Recapture L ost Revenue (400,000.00)$ Employee Premium Pay (200,000.00)$ Additional COVID Related Expenditures (185,182.86)$ TOTAL -$ 319 Page 2 of 2 Financial Considerations: The proposed use of the funds conforms to the required use as stated by the US Treasury. This is the plan for the use and could change with Council approval if necessary. The funds must be committed by December 2024 and fully spent by December 2026. Legal Review: None applicable Board/Commission/ or Committee Recommendation: None applicable Staff Recommendation: Staff recommends approval of the Resolution No. 2022-04 Attachments: Resolution No. 2022-04 320 Res 2022-04 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2022-04 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING THE PROPOSED USE OF AMERICAN RESCUE PLAN ACT FUNDS FOR THE TOWN OF TROPHY CLUB; AND PROVIDING AN EFFECTIVE DATE. WHEREAS the Town of Trophy Club is scheduled to receive $3,085,182.86 is APRA Funds and desires to identify their use through a resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the ARPA Funds received by the Town of Trophy Club will be used in a manner as described in the agenda item and in accordance with the US Treasury directions. Section 2. That this Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas on this 22nd day of March 2022. Alicia Fleury, Mayor Town of Trophy Club, Texas ATTEST:[SEAL] APPROVED AS TO FORM: Leticia Vacek, Town Secretary J. David Dodd III, Town Attorney Town of Trophy Club, Texas Town of Trophy Club, Texas 321 Future Agenda Items March 22, 2022 Future Agenda Items will be divided into 3 Categories: 1) Current listing of all future agenda items requested by Council that have not been addressed. 2) Items that have been researched and are scheduled for a report to Council (first 2-4 weeks). 3) Items that Council has requested additional research/staff time on and will be brought back for public discussion at a Council Meeting. Council will be provided updates on items that require significant time. The Future Agenda Items list will be placed on the Council Meeting agenda to provide a status on all items. The current list will be reviewed and as items are completed; said items will be removed. The Council may add items as needed to the list. 1) Receive an update regarding Entryway Monumentation/Landscaping for the Town of Trophy Club. The Arts Subcommittee interviewed two Landscape Architect Firms and selected Halff Associates to move forward with the design of Town entrances and monumentation. The Team had a very good understanding of what we want to achieve and they have a wealth of experience. They expect the design phase to take 14 weeks. Only one Statement of Qualifications was received for the statue RFQ. This sculptor has estimated 18 months to complete the 3 pro-golfer statues. Staff reached out to Landscape Architect for names of local sculptors that may be able to help complete the statues. 2) Develop a Strategic Plan for the Town addressing future goals with budgetary needs for each department. A Director’s Retreat is scheduled for March 23-24. Staff will develop departmental goals based on key areas identified at the Council Retreat and skills learned in the Strategic Management Training. 3) Modifying the Existing Veteran’s Memorial to include “Space Force”. Staff has approved the new Space Force plaque and is working with Ft. Worth Monuments to update the Veteran’s Park Towers. The new POW/MIA monument is expected to take 6-10 months for completion. Parks Staff is in planning process to add a disabled ramp at the Park. 4) Placement of Ordinance providing for the Sale of Beer & Wine at Trophy Club Parks. Town Attorney/Town Manager will provide input relating to said item on March 22nd. Revised by: L. Vacek March 22, 2022 322