HomeMy WebLinkAboutAugust 7, 2007 Regular Session BackupNOTICE OF
REGULAR SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
TUESDAY, AUGUST 7, 2007
6:00 P.M.
TO: THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF
DIRECTORS AND TO ALL OTHER INTERESTED PERSONS:
NOTICE IS HEREBY GIVEN THAT THE BOARD OF DIRECTORS OF TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND DENTON COUNTIES WILL
MEET IN REGULAR SESSION ON TUESDAY, AUGUST 7, 2007, AT THE DISTRICT
ADMINISTRATION BUILDING, IN THE BOARDROOM, 100 MUNICIPAL DRIVE, TROPHY
CLUB, TEXAS 76262, AT 6:00 P.M., FOR THE FOLLOWING:
*REGULAR SESSION
A.1 Call to Order and Announce a Quorum.
A.2 Public Comments or Presentations.
B.1 Review and discuss FY07-08 Preliminary Budget for MUD 1. (Sakura Moten-Dedrick) Pgs. 1-12
B.2 Present and discuss 2007 Certified Appraisal Records and Rollback Tax Rate Calculation. Pgs. 13-
17
B.3 Discuss and take appropriate action to take a record vote approving the placement of a proposal
to adopt a 2007 Tax Rate on the September 11, 2007 Municipal Utility District No. 1 public
meeting agenda as an action item.
B.4 Discuss and take appropriate action regarding the MUD 1 President announcing September 11,
2007, as the date for a Public Hearing regarding the adoption of the Fiscal Year 2007-2008 MUD
1 Budget. Pg. 18
B.5 Discuss and take appropriate to renegotiate Cingular's (AT&T) cell tower lease agreement.
B.6 Discuss and take appropriate action concerning proposed contract(s) with Town of Trophy Club
for the providing of water and sewer services to the proposed new development by Centurion
American.
B.7 Discuss and take appropriate action concerning disposition of amounts to be received as a result
of the contract(s) with the Town of Trophy Club for the furnishing of water and wastewater
services to the new development known as "The Highlands," including discussion and
appropriate action for resolving disputes with Trophy Club MUD No. 2 over the disposition of
such funds by nonbinding mediation, nonbinding arbitration or binding arbitration.
C.1 Receive District Manager's Report
a. Items to be placed on future agendas.
D.1 Review and Approve Minutes
a. July 5, 2007 – Pgs. 20-21
b. July 12, 2007 – Pgs. 22 - 25
D.2 Review and Approve Disbursements and Variance Report
a. June 2007 - Pg. 27
D.3 Review Monthly Tax Collection Report
a. June 2007 - Pg. 29
D.4 Set Next Meeting Date - Pg. 30
Next regularly scheduled meeting date: Tuesday, September 11, 2007 at 6:00 p.m.
F.1 Adjourn.
Notice is hereby given that a quorum of the Town Council may be in attendance at this scheduled meeting.
* THE BOARD RESERVES THE RIGHT TO ADJOURN INTO A CLOSED SESSION AT ANY TIME
DURING THE MEETING FOR THE PURPOSE OF SEEKING THE ADVICE OF ITS ATTORNEY ABOUT
ANY ITEM ON THE AGENDA OR THAT ARISES AT THE MEETING, PURSUANT TO SECTION 551.071
OF THE TEXAS GOVERNMENT CODE.
CERTIFICATION)
THE STATE OF TEXAS)
COUNTY OF DENTON)
COUNTY OF TARRANT)
THIS CERTIFIES THAT ON THE AUGUST 2, 2007, A COPY OF THE ABOVE NOTICE OF A MEETING
OF THE TROPHY CLUB MUNICIPAL DISTRICT NO. 1 TO BE HELD ON AUGUST 7, 2007, WAS
POSTED ON THE FRONT WINDOW OF THE TROPHY CLUB M.U.D. ADMINISTRATION BUILDING,
100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS, WHICH IS A PLACE CONVENIENT TO THE PUBLIC
WITHIN THE BOUNDARIES OF THE DISTRICT, AND A COPY WAS ALSO PROVIDED TO THE
COUNTY CLERKS OF DENTON AND TARRANT COUNTIES, TO BE POSTED ON A BULLETIN BOARD
AT A PLACE CONVENIENT TO THE PUBLIC IN SUCH COUNTY COURT HOUSES, PURSUANT TO
SECTION 49.063 OF THE WATER CODE AND SECTION 551.054 OF THE OPEN MEETINGS ACT,
CHAPTER 551 TEXAS GOVERNMENT CODE.
THIS FACILITY IS WHEELCHAIR ACCESSIBLE AND ACCESSIBLE PARKING SPACES ARE
AVAILABLE. REQUESTS FOR ACCOMMODATIONS OR INTERPRETATIVE SERVICES MUST BE
MADE 48 HOURS PRIOR TO THIS MEETING. PLEASE CONTACT MARY MOORE AT (682) 831-4685
OR FAX YOUR REQUEST TO (817) 490-0705.
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 8-7-2007
Subject: Agenda Item No. B.1
Review and discuss FY07-08 Preliminary Budget for MUD 1. (Sakura Moten-
Dedrick)
EXPLANATION:
For discussion. Anticipate both the required Public Hearing (per Water Code) and Budget
Adoption to occur on same meeting date in September.
(smd)
Attachments: 1. FY07-08 MUD 1 Preliminary Budget
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MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 8-7-2007
Subject: Agenda Item No.B.2
Present and discuss 2007 Certified Appraisal Records and Rollback Tax Rate
Calculation.
EXPLANATION:
While Water Districts are not are required to publish their rollback tax rate in the newspaper, we
will, however, publish it on Trophy Club’s website and television channel. The rollback rate is
the highest rate the Water District may adopt without qualified voters petitioning for a rollback
election. Water Code Section 49.236(d) sets the rollback as the current year’s debt service and
contract tax rates, plus the maintenance & operations (M&O) rate that would impose no more
than 1.08 times the amount of M&O tax imposed by the district in the preceding year on the
average appraised value of a residence homestead in the district. The average appraised value
disregards any homestead exemption available only to people with disabilities or those sixty-five
(65) years of age or older. MUD No. 1’s rollback tax rate is $._______/$100 valuation (provided
prior to meeting).
Will post "Rollback Tax Rate Calculation" on the internet and local television channel beginning
August 10, 2007 through budget and tax rate adoption during September’s meeting. Newspaper
not required.
RECOMMENDATION:
ACTION:
(smd)
Attachments: 1. 2007 Certified Assessment Roll Grand Totals Report
2. 2007 Water District Tax Rate Rollback Worksheet (provided prior to meeting)
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MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 8-7-2007
Subject: Agenda Item No.B.4
Discuss and take appropriate action regarding the MUD 1 President announcing
September 11, 2007, as the date for a Public Hearing regarding the adoption of the
Fiscal Year 2007-2008 MUD 1 Budget.
EXPLANATION:
Will publish “Notice of Public Hearing On Tax Rate” in the Trophy Club Times on August 17,
2007. This is much in advance of the 7 days prior to hearing requirement. The notice will also
be advertised on both the internet and local television channel through budget and tax rate
adoption during September’s meeting.
RECOMMENDATION:
ACTION BY MUD1:
(smd)
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MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 8-7-2007
Subject: Agenda Item No.D.1
Review and Approve Minutes
a. July 5, 2007
b. July 12, 2007
(mm)
Attachments: 1. Minutes
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MINUTES OF SPECIAL SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
July 5, 2007
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Tarrant and
Denton Counties met in Special Session on Thursday, July 5, 2007, at 12:00 p.m., in the
Boardroom of the Trophy Club Administration Building, 100 Municipal Drive, Trophy Club,
Texas 76262.
DIRECTORS PRESENT:
Dean Henry President
Connie White Secretary/Treasurer
Jim Hase Asst. Secretary/Treasurer
DIRECTORS ABSENT:
Gary Cantrell Vice President
Neil Twomey Director
STAFF AND GUESTS PRESENT:
Walter Fitzpatrick District Manager
Mary Moore Recording Secretary
Pete Tart Tax Attorney
Sakura Dedrick Finance Director
Jim Buxton Financial Analyst
REGULAR SESSION
A.1 Call meeting to order.
President Henry announced a quorum and called the meeting to order at 12:07 p.m.
A.2 Public Comments or Presentations.
No public comments.
B.1 Discuss and take appropriate action to approve a resolution authorizing the
issuance of Series 2007 Contractual Obligations for the acquisition of a Fire Truck
(E681).
District Manager Fitzpatrick advised that Attorney West has reviewed the resolution and made a
few minor revisions.
Director Hase moved to approve the resolution, authorizing the issuance of Series 2007
Contractual Obligations for the acquisition of Fire Truck E681. Director White seconded the
motion. Floor was opened up for discussion. Pete Tart addressed the Board’s questions. Motion
carried unanimously.
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F.1 Adjourn.
Meeting adjourned at 12:40 p.m.
_________________________________
Dean Henry, President
(SEAL)
____________________________________
Constance White, Secretary/Treasurer
____________________________
Mary Moore, Recording Secretary
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MINUTES OF REGULAR SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
July 12, 2007
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Tarrant and
Denton Counties met in Regular Session on Thursday, July 12, 2007, at 5:00 p.m., in the
Boardroom of the Trophy Club Administration Building, 100 Municipal Drive, Trophy Club,
Texas 76262.
DIRECTORS PRESENT:
Dean Henry President
Jim Hase Asst. Secretary/Treasurer
Neil Twomey Director
DIRECTORS ABSENT:
Gary Cantrell Vice President
Connie White Secretary/Treasurer
STAFF AND GUESTS PRESENT:
Walter Fitzpatrick District Manager
Sakura Dedrick Finance Director
Mary Moore Recording Secretary
Bob West Attorney
Betty Ann Henry 308 Oakmont Drive
REGULAR SESSION
A.1 Call Meeting to Order.
President Henry announced a quorum and called the meeting to order at 5:03 p.m.
A.2 Public Comments or Presentations.
No public comments.
B.1 Review and discuss FY07-08 Preliminary Budget for MUD 1. (Sakura Moten-
Dedrick)
Finance Director Dedrick addressed the Boards’ questions regarding the preliminary budget
adding that not much is different from the previous month except that bank balances have been
added.
Director Hase stated that MUD 1 will need to raise MUD 1’s fire tax, possibly by one or two
cents, to cover MUD 1’s costs of improving the Fire Station.
B.2 Discuss and take appropriate action concerning proposed contract(s) with Town of
Trophy Club for the providing of water and sewer services to the proposed new
development by Centurion American.
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Attorney West provided the Board with an update regarding the status of the contracts, which
will be distributed later this evening at the Master District meeting for the Board to review.
B.3 Discuss and take appropriate action concerning disposition of amounts to be
received as a result of the contract(s) with the Town of Trophy Club for the
furnishing of water and wastewater services to the new development known as "The
Highlands," including discussion and appropriate action for resolving disputes with
Trophy Club MUD No. 2 over the disposition of such funds by nonbinding
mediation or binding arbitration.
Attorney West advised that Joe B. Allen or Robin Bobbitt or someone from her law firm, Andy
Johnson, or someone similar and who is familiar with MUD affairs, are arbitrator/mediator
candidates.
Bob West received an email today from Attorney Liston to consider Mike Page, who is familiar
with Trophy Club and wrote the originall Master District contract, and was the attorney for MUD
2 and 3 when they merged. Bob West thinks it is a good suggestion, as he is a good lawyer. Bob
West is more interested with finding someone who can stay neutral and is familiar with MUD
agreements and procedures.
Attorney West feels that the MUDs could sign the contracts as written even though the money
issue is not yet resolved between MUD 1 and 2, as it is agreed that the money will go into an
escrow account. The contracts are currently written to be signed by TCMUD 1, TCMUD 2, and
the Town. Attorney West suggested that it should also be signed by the Master District, which is
an issue that still needs to be resolved.
C.1 Receive District Manager's Report
a. Items to be placed on future agendas
District Manager Fitzpatrick had nothing to report.
D.1 Review and Approve Minutes
a. April 19, 2007 - Special Session minutes
b. June 12, 2007 - Regular Session minutes
Director Hase moved to approve the minutes for both April 19 and June 12, 2007, with
corrections. Director Twomey seconded the motion. Floor was opened for discussion. Director
Twomey stated that some of the numbers under Agenda Item B.6 of the June 12th minutes were
incorrect and he would submit the corrected information to Recording Secretary Moore for
inclusion into the minutes. Motion carried unanimously.
Amended June 12, 2007 regular session minutes now read as follows:
Director Twomey looked at the 2006 fire tax values. If something was to happen
to Solana, which has a value of $149 million, it would cause both MUDs’ to have
to increase their fire tax rate by roughly two cents to make up for the loss of
$135,142 in Solana fire taxes.
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Next, Director Twomey looked at the amount of water and wastewater that we
were charging Solana. Robert Scott provided all the numbers. In 2006, the Master
MUD has total revenues of water and wastewater sales of $3.8 million dollars,
with about 805 million gallons of water consumed.
At the same time, roughly 672 million gallons of water were used by the non-
Solana areas. In order to determine the impact of Solana has on our water system,
Director Twomey first looked at total cost for Fort Worth water purchased,
assuming we were still using all of our well water, and he was able to determine
the cost of water per gallon purchased. Then, he examined Solana’s water
revenues of $599,254, and determined that Master MUD purchased water from
Fort Worth at a cost of $221,649.
Director Twomey again noted that the Solana Fire Tax revenue equals $135,143
along with the revenue from Solana reduced by the cost of Fort Worth water
expenditures was $377,604 equaled $512,747 in financial benefits to the
taxpayers in MUD 1 and MUD 2 in 2006.
Also, Director Twomey asked the Board to consider the anticipated expansion in
Solana. It can only increase future tax valuations and water usage and that will
have an increased positive financial impact on both MUDs in the form of lower
Fire taxes and reduced water rates.
He noted that the present value of $512,747 over 20 years is worth $6.3 million to
the Master MUD and the future financial benefits will increase as Solana
continues to develop.
Master MUD has total revenues of water and wastewater sales of $3.8 million
dollars, with about 805 million gallons consumed, then subtracted out Solana,
came down to roughly $672 million used by non-Solana areas. The impact of
Solana has on water system, first, looked at total cost for Fort Worth water,
assuming still using well water, and figured out their cost per gallon, then took
Solana water sales, and determined that Master MUD would have a reduced
expense of $221,000. The Solana Fire Tax revenue equals $135,000. The revenue
from Solana reduced by Fort Worth water expenditures, purchases came out to net
of $377,000 and add $145,000 equals a $513,000 benefit to the MUDs and our
water system. Also, need to look at expansion in Solana, which will increase
taxes and water usage, positive impact on both MUDs. The present value of
$513,000 over 20 years is worth $6.3 million, and the income will go up in taxes
and water sales, and that number will increase. Everyone’s water would be higher
without Solana as well as have taxes go up two cents.
D.2 Review and Approve Disbursements and Variance Report
a. May 2007
Director Hase moved to approve the disbursements and variance report for May 2007. Director
Twomey seconded the motion. Motion carried unanimously.
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D.3 Review Monthly Tax Collection Report
a. May 2007
Board reviewed the May Tax Collection Report with no action taken.
D.4 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, August 7, 2007, 6:00 p.m.
Board agreed to meet on Tuesday, August 7, 2007, at 6:00 p.m.
F.1 Adjourn.
Meeting adjourned at 5:48 p.m.
_________________________________
Dean Henry, President
(SEAL)
____________________________________
Jim Hase, Secretary/Treasurer
____________________________
Mary Moore, Recording Secretary
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MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 8-7-2007
Subject: Agenda Item No.D.2
Review and Approve Disbursements and Variance Report
a. June 2007
EXPLANATION:
See attached.
RECOMMENDATION:
ACTION BY MUD1:
(smd)
Attachments: 1. Variance Report
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MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 8-7-2007
Subject: Agenda Item No. D.3
Review Monthly Tax Collection Report
a. June 2007
EXPLANATION:
June 2007
(mm)
Attachments: 1. June Tax Collection Report
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