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HomeMy WebLinkAboutSeptember 9, 2008 Regular Session BackupTown of Trophy Club Municipal Utility District No.1 Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Tuesday, September 9, 2008 6:00 P.M. A.1 Call to Order and Announce a Quorum. A.2 Public Comments or Presentations. B.1 Open Public Hearing. B.2 Trophy Club Municipal Utility District No. 1 to conduct a Public Hearing, regarding their Budget and proposed tax rate to increase, decrease, or make no change for the fiscal year beginning October 1, 2008 and ending September 30, 2009. B.3 Close Public Hearing. B.4 Discuss and take appropriate action regarding Resolution 2008-0903, adopting and approving Trophy Club Municipal Utility District No. 1's Budget for the fiscal year beginning October 1, 2008, and ending September 30, 2009. B.5 Discuss and take appropriate action regarding Resolution 2008-0909-B, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for debt service for the fiscal year beginning October 1, 2008, and ending September 30, 2009. B.6 Discuss and take appropriate action regarding Resolution 2008-0909-C, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for maintenance and operations, including the portion of such tax rate to support the Fire Department, for the fiscal year beginning October 1, 2008, and ending September 30, 2009. B.7 Discuss and take appropriate action regarding Resolution 2008-0909-A, approving the Trophy Club Municipal Utility District No. 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2008. B.8 Discuss and take appropriate action to declare MUD 1’s position that the fire station, as it is now and as it may be improved in accordance with pending plans, is to remain in its present location. B.9 Discuss and take appropriate action regarding a proposed Interlocal Cooperation Agreement for Fire Protection Services between the Municipal Utility Districts and the Town with particular emphasis on that portion thereof referring to the establishment of the assessment to be paid for Fire Protection by those persons not in either MUD. B.10 Discuss and take appropriate action regarding proposed agreement entitled “Agreement for Division of Rent for Fire Department Facilities” to govern the division of the Public Improvement Development (PID) portion of the funds to be paid toward the rent of the fire station. C.1 Receive District Manager's Report a. Items for future agenda C.2 Receive Finance Director's Report a. Audit Preparation/Committee Selection D.1 Review and Approve Minutes a. August 12, 2008 - Regular Session minutes D.2 Review and Approve Disbursements and Variance Report a. July 2008 D.3 Review Monthly Tax Collection Report a. July 2008 D.4 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, October 7, 2008, 6:00 p.m. F.1 Adjourn. MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.A.1 Call to Order and Announce a Quorum. (mm) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.A.2 Public Comments or Presentations. (mm) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.A.3 Trophy Club Municipal Utility District No. 1 to conduct a Public Hearing, regarding their Budget and proposed tax rate to increase, decrease, or make no change for the fiscal year beginning October 1, 2008 and ending September 30, 2009. MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No. B.4 Discuss and take appropriate action regarding Resolution 2008-0903, adopting and approving Trophy Club Municipal Utility District No. 1's Budget for the fiscal year beginning October 1, 2008, and ending September 30, 2009. EXPLANATION: This budget as proposed incorporates a total tax rate of $.23000 for FY08-09 as compared to this year’s current total tax rate of $.23000. There is no change in the overall tax rate. The O&M Rollback rate is $.10787; however, this proposed budget puts the total O&M tax rate above the rollback rate at $.11602. In an effort to offset the increase over O&M rollback and maintain no increase in the overall rate, this budget incorporates a total of $124,154 in reserves ($64,154 O&M / $60,000 I&S). The I&S fund is expected to end the current year with $67,333 in reserves. This budget absorbs $60,000 of this to allow for a buffer. RECOMMENDATION: Staff recommends approval. (smd) Attachments: 1. FY2008-09 Proposed MUD1 Budget 2. FY2008-09 Proposed Fire Budget 3. Resolution TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2008-0909 A RESOLUTION TO APPROVE FY 2008-2009 BUDGET FOR TROPHY CLUB MUD NO. 1 A RESOLUTION OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, OF DENTON AND TARRANT COUNTIES, TEXAS; APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR OCTOBER 1, 2008 THROUGH SEPTEMBER 30, 2009, PROVIDING THAT EXPENDITURES FOR SAID FISCAL YEAR BE MADE IN ACCORDANCE WITH SAID BUDGET, PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, an annual budget for the fiscal year beginning October 1, 2008 and ending September 30, 2009, has been duly created by the Finance Department of the Trophy Club Municipal Utility District No. 1 (the “District”) in accordance with Section 49.057(b) of the Texas Water Code; and WHEREAS, a public hearing was held on September 9, 2008, in accordance with Section 49.057(b) of the Texas Water Code, following due publication of notice thereof at which time all citizens and parties of interest were given the opportunity to be heard regarding the proposed 2008-2009 fiscal year budget; and WHEREAS, after full and final consideration it is the opinion of the Board Directors of the District No. 1, that the 2008-2009 fiscal year budget of revenues and expenditures, as hereinafter set forth, should be adopted and approved. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1: Section 1. That the annual budget of revenues and expenditures necessary for conducting affairs of the District for the fiscal year 2008-2009, attached hereto and incorporated herein as Exhibit A, providing for a financial plan for the ensuing fiscal year is hereby approved and adopted. Section 2. That expenditures during the fiscal year shall be made in accordance with this budget unless otherwise authorized by proper amendment. Said budget document shall be on file for public inspection in the office of the District. Section 3. That unless modified otherwise by the Board of the district, the remaining budget for all capital improvements from fiscal year 2007-2008, attached hereto and incorporated herein as Exhibit B, not completed or started as of September 30, 2008, will be automatically carried over into fiscal year 2008-2009. Section 4. That if any word, sentence, section, subsection, subdivision, paragraph, clause, phrase or provision of this Resolution shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this resolution as a whole or any part of the provision hereof other than the part so decided to be invalid or unconstitutional. Section 5. That all provisions of the resolutions of the District’s Board of Directors in conflict with the provisions of this resolution shall be and the same are hereby repealed and all other provisions of the resolutions of the MUD 1 Board not in conflict with the provisions of this resolution shall remain in full force and effect. Section 6. That this resolution shall become effective immediately upon its passage. PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1, this the 9th day of September, 2008. ___________________________ Dean Henry, President Trophy Club MUD No. 1 (SEAL) ATTEST: _____________________________ Constance S. White, Secretary Trophy Club MUD No. 1 CERTIFICATE OF RESOLUTION (2008-0909) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that, as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on September 09, 2008, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Dean Henry President Gary Cantrell Vice President Connie White Secretary-Treasurer Jim Hase Asst. Secretary Neil Twomey Director and Directors Henry, Cantrell, White, Hase and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written RESOLUTION (2008-0909) APPROVING THE 2008-2009 TROPHY CLUB MUD NO. 1 BUDGET was duly introduced for the consideration of the Board of Directors of the District. It was then duly moved and seconded that such Resolution be adopted and, after due discussion, such motion, carrying with it the adoption of such Resolution, prevailed and carried by the following vote: AYES: NOES: 3. That a true, full and correct copy of such Resolution adopted at such meeting is attached to and follows this certificate; that such resolution has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Resolution would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Government Code, as amended. SIGNED AND SEALED the 9th day of September 2008. ________________________________ Constance S. White Secretary, Board of Directors (SEAL) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No. B.5 Discuss and take appropriate action regarding Resolution 2008-0909-B, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for debt service for the fiscal year beginning October 1, 2008, and ending September 30, 2009. EXPLANATION: RECOMMENDATION: ACTION BY MUD1: Recommended Motion: Move to adopt Resolution 2008-0909-B, fixing and levying the MUD 1 tax rate for debt service for FY 2008-2009. (smd) Attachments: 1. Resolution TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 RESOLUTION NO. 2008-0909-B A RESOLUTION TO SET THE COMPONENT OF THE MUD 1 TAX RATE FOR DEBT SERVICE FOR 2008 RESOLVED: Pursuant to Section 26.05 of the Texas Tax Code, and Sections 49.211(a), 49.212(a), 54.601 and 54.602 of the Texas Water Code, the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby finds that a tax rate of $.09919 per $100 of taxable value, if applied to the total taxable value of property on the District's appraisal roll for the 2008 tax year, will impose the total amount of taxes needed to pay the District’s debt obligations during the next year, and that such tax rate is reasonable and necessary to service the District's debt obligations during the next year, including payments of lawfully incurred contractual obligations providing security for the payment of the principal of and interest on bonds and other evidences of indebtedness issued on behalf of the District. It is therefore ordered by the Board of Directors of the District that the component of the 2008 tax rate for debt service is hereby set at $.09919 per $100 of taxable value of each property included on the appraisal roll for the District for the 2008 tax year. PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas this 9th day of September, 2008. _______________________________ President, Trophy Club MUD No. 1 (SEAL) ATTEST: _________________________________ Board Secretary, Trophy Club MUD No. 1 CERTIFICATE OF RESOLUTION (2008-0909-B) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Special Meeting on September 9, 2008, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Dean Henry President Gary Cantrell Vice President Constance S. White Secretary/Treasurer Jim Hase Assistant Secretary Neil Twomey Director and Directors Henry, Cantrell, White, Hase and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written RESOLUTION (2008-0909-B) SETTING THE COMPONENT OF THE MUD 1 TAX RATE FOR DEBT SERVICE FOR 2008 was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Resolution be adopted and, after due discussion, such motion, carrying with it the adoption of such Resolution prevailed and carried by the following vote: AYES: NOES: 3. That a true, full and correct copy of such Resolution adopted at such meeting is attached to and follows this certificate; that such Resolution has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Resolution would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code, as amended. SIGNED AND SEALED the 9th day of September 2008. _____________________________________ Secretary, Board of Directors (SEAL) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No. B.6 Discuss and take appropriate action regarding Resolution 2008-0909-C, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for maintenance and operations, including the portion of such tax rate to support the Fire Department, for the fiscal year beginning October 1, 2008, and ending September 30, 2009. EXPLANATION: RECOMMENDATION: ACTION BY MUD1: Recommended motion: Move to adopt Resolution 2008-0909-C, with approved corrections, to fix and levy the MUD 1 tax rate for Maintenance and Operations, including the portion for the Fire Department for FY 2008-2009. (smd) Attachments: 1. Resolution TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2008-0909-C A RESOLUTION TO SET THE COMPONENT OF THE MUD 1 TAX RATE FOR MAINTENANCE AND OPERATION EXPENDITURES FOR 2008, INCLUDING THE PORTION OF SUCH TAX RATE TO SUPPORT THE FIRE DEPARTMENT RESOLVED: Pursuant to Section 26.05 of the Texas Tax Code and Sections 49.107 and 49.351 of the Texas Water Code, the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby finds that a tax rate of $.13081 per $100 of taxable value, if applied to the total taxable value of property on the District's appraisal roll for the 2008 tax year, will impose the amount of taxes needed to fund maintenance and operation expenditures of the District for the next year, including fire department operations. The Board further finds that of this tax rate for maintenance and operation expenditures, $.11602 per $100 of taxable value is reasonable and necessary to support the Fire Department under the plan previously approved by the District's electors, and that the remainder of $.01479 per $100 taxable value is reasonable and necessary to fund other maintenance and operation expenditures of the District. It is therefore ordered by the Board of Directors of the District that the component of the 2008 tax rate for Maintenance and Operation expenditures is hereby set at $.13081 per $100 of taxable value of each property included on the appraisal roll for the District for the 2008 tax year, of which $.11602 per $100 of taxable value shall be used to support the Fire Department and the remaining $.01479 per $100 of taxable value shall be used to fund other maintenance and operation expenditures of the District. PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this 9th day of September 2008. ATTEST: _________________________ ___ _____________________________ President, Trophy Club MUD No. 1 Secretary, Trophy Club MUD No. 1 (SEAL) CERTIFICATE OF RESOLUTION (2008-0909-C) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on September 9, 2008, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Dean Henry President Gary Cantrell Vice President Constance S. White Secretary/Treasurer Jim Hase Asst. Secretary Neil Twomey Director and Directors Henry, Cantrell, White, Hase and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written RESOLUTION (2008-0909-C) SETTING THE COMPONENT OF THE MUD 1 TAX RATE FOR MAINTENANCE AND OPERATION EXPENDITURES FOR 2008, INCLUDING THE PORTION OF SUCH TAX RATE TO SUPPORT THE FIRE DEPARTMENT was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Resolution be adopted and, after due discussion, such motion, carrying with it the adoption of such Resolution prevailed and carried by the following vote: AYES: NOES: 3. That a true, full and correct copy of such Resolution adopted at such meeting is attached to and follows this certificate; that such Resolution has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Resolution would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code. SIGNED AND SEALED the 9th day of September, 2008. ______________________________________ Secretary, Board of Directors (SEAL) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No. B.7 Discuss and take appropriate action regarding Resolution 2008-0909-A, approving the Trophy Club Municipal Utility District No. 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2008. EXPLANATION: RECOMMENDATION: ACTION BY MUD1: Recommended motion: Move to adopt Resolution 2007-0911-A, with approved corrections, approving the MUD 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2008. (smd) Attachments: 1. 2008 Appraisal Roll – Denton 2. 2008 Appraisal Roll - Tarrant 3. Resolution TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2008-0909-A A RESOLUTION TO APPROVE 2008 MUD 1 TAX ROLL RESOLVED: Pursuant to Section 26.09 (e) of the Texas Tax Code, the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby approves the 2008 certified appraisal roll dated July 18, 2008 from Denton County Central Appraisal District and July 25, 2008 from Tarrant Appraisal District, in which the net taxable appraised value was listed as $259,159,262 and $261,133,354, respectively for a total of $520,292,616. The current 2008 tax rate (A total of $.23000/$100 assessed value) approved by the Board of Directors of Trophy Club Municipal Utility District No. 1, which has been imposed on each property included on the certified appraisal roll for the District for 2008, totals $1,196,673 actual levy. The Board hereby declares that such appraisal roll with amounts of tax entered shall constitute the District's tax roll for the 2008 tax year. PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this the 9th day of September, 2008. ___________________________ Dean Henry, President Trophy Club MUD No. 1 ATTEST: _____________________________ Constance S. White, Secretary Trophy Club MUD No. 1 (SEAL) CERTIFICATE OF RESOLUTION (2008-0909) THE STATE OF TEXAS } COUNTY OF DENTON }  COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened on September 09, 2008, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Dean Henry President Gary Cantrell Vice President Connie White Secretary-Treasurer Jim Hase Asst. Secretary Neil Twomey Director and Directors Henry, Cantrell, White, Hase and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written RESOLUTION (2008-0909) APPROVING THE 2008 MUD 1 TAX ROLL and duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Resolution be adopted and, after due discussion, such motion, carrying with it the adoption of such Resolution prevailed and carried by the following vote: AYES: NOES: 3. That a true, full and correct copy of such Resolution adopted at such meeting is attached to and follows this certificate; that such resolution has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Resolution would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Government Code, as amended. SIGNED AND SEALED the 9th day of September 2008. ________________________________ Constance S. White Secretary, Board of Directors (SEAL) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.B.8 Discuss and take appropriate action to declare MUD 1’s position that the fire station, as it is now and as it may be improved in accordance with pending plans, is to rema n in its present location. i EXPLANATION: Tabled from August meeting. RECOMMENDATION: ACTION BY MUD1: (wrf) Attachments: 1. None MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.B.9 Discuss and take appropriate action regarding a proposed Interlocal Cooperation Agreement for Fire Protection Services between the Municipal Utility Districts and the Town with particular emphasis on that portion thereof referring to the establishment of the assessment to be paid for Fire Protection by those persons not in either MUD. EXPLANATION: Tabled from August meeting. The Board discussed, and advised that Attorney Liston is working on an additional contract between MUD 1 and 2, that is related to this ILA. As such, the Board agreed to table this item to their September meeting. RECOMMENDATION: ACTION BY MUD 2: Attachments: 1. Information Memorandum 2. ILA This is the information which I have previously sent concerning the proposed financing. It is assumed that its provisions will be the subject of a short written agreement, between the MUDs and the Master District, to be created by the Attorneys. The following is a proposed plan of how money will be received, as fire taxes and PID assessments, and will be disbursed to pay the cost of operation of the Fire Department, including the financing of the Fire Station: The Master District will own the new fire station, financing its construction with funds received from the two MUDs. The Fire Department will pay an annual “rent” for the fire station, to be disbursed as set out below. The path of the funds collected to defray the cost of the operation of the Fire Department will be as follows: 1. Denton Tax Collector receives tax payments and sends them to the Texpool accounts of each MUD. The PID administrators (the Council) receive and send to their Texpool account the assessments from the PID property owners, an amount equivalent to the MUD 1’s fire tax. 2. The collected funds of all three accounts will be transferred to the local Bank (First Financial) for deposit in the Fire Operating Account. 3. From this account, moneys needed for the operations and maintenance of the Fire Department will be disbursed. One such disbursement will be a sum, called (at this time, for want of a better word) “rent.” This is a sum which will be divided equally between the MUDs. Most of MUD 1’s one-half will be further disbursed to satisfy MUD 1’s bond payments as they accrue. MUD 2’s payments will be made to MUD 2 for disposition by MUD 2, since it is funding its one-half of the fire station out of cash it has on hand. THE STATE OF TEXAS) ) COUNTY OF DENTON ) INTERLOCAL COOPERATION AGREEMENT FOR FIRE PROTECTION SERVICES THIS AGREEMENT is made and entered into this ____ day of _________, 2008, by and between Trophy Club Municipal Utility District No. 1, Trophy Club Municipal Utility District No. 2, both districts created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54 (hereinafter referred to as “MUDs 1 and 2”) and the Town of Trophy Club, a Home Rule Municipality, (hereinafter referred to as “Town”). W I T N E S S E T H : WHEREAS, MUDs 1 and 2 is a duly organized political subdivision of the State of Texas engaged in the administration of fire protection and related services for the benefit of those persons residing, traveling within, or being physically located within the boundaries of MUDs 1 and 2 and further without limitation, the incorporated and unincorporated limits of the Town of Trophy Club, Texas; and WHEREAS, MUD1 and 2 together are owners and operators of certain vehicles and/or other equipment designed to engage in fire-fighting activities and have in their employ such trained personnel whose duties are related to the provision of such services and the operation of necessary vehicles and equipment (hereinafter collectively referred to as “Fire Functions”); and WHEREAS, the provision of Fire Functions is a governmental function that serves the public health and welfare, promotes efficiency and effectiveness of local governments, and is of mutual concern to the contracting parties; and WHEREAS, MUDs 1 and 2 are authorized to perform Fire Functions pursuant to Section 49.351 of the Texas Water Code and the Town is individually authorized to perform Fire Functions pursuant to its police powers and the parties desire to enter into this Agreement regarding the performance of Fire Functions; and WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter 791, et seq., as amended (the “Act”) provides authority for governmental entities of the State of Texas to enter into Interlocal agreements with each other regarding governmental functions and services as set forth in the Act; and NOW, THEREFORE, Town and MUDs 1 and 2, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: I. Incorporation / Term 1.01 Incorporation of Recitals. The foregoing recitals are agreed upon and incorporated herein as a part of this Agreement. 1.02 Term. This Agreement shall become effective upon approval by each of the respective governing bodies of Town and MUDs 1 and 2, and upon execution by their respective authorized representatives, and shall remain in effect for a term of one (1) year. Such one (1) year initial term shall renew annually for a total of ten (10) terms of one (1) year each, unless terminated by any party as provided herein. II. Definitions 2.01 As used herein, the words and phrases hereinafter set forth shall have the meanings as follows: A. “Eligible Persons” shall mean those persons owning property, residing, traveling within, or being physically located within the corporate boundaries of the Town of Trophy Club, Texas and/or MUDs 1 and 2 and shall also include those persons owning property, residing, traveling within, or being physically located within the corporate boundaries of another political subdivision of the State of Texas with whom Town and/or MUD2 and/or MUD1 have a mutual aid agreement to provide fire protection services. B. “Fire-fighting Activities”, “Fire Protection Services”, or “Fire Functions” shall mean any and all of the customary and usual activities of a fire department, including fire suppression, fire prevention, training, safety education, maintenance, communications, medical emergency services, photography, and administration. III. Obligations and Rights of the Parties 3.01 Budget and Funding A. Budget The Director of Finance together with the Fire Chief shall prepare a budget for Fire Protection Services. It shall be the responsibility of the Fire Chief to certify that the budget so prepared meets the Fire Protection needs of the Eligible Persons and allows an appropriate level of service. The budget shall be presented to the governing board of the Master District for final approval. The approval of Master District under this section shall not be unreasonably withheld. B. Funding MUDs 1 and 2 and the Town shall share the funding of all costs associated with Fire Protection Services provided to Eligible Persons as defined herein, in accordance with the terms of this Agreement. Said funding shall be accomplished as follows: 1) MUDs 1 and 2 shall fund their share of all costs associated with Fire Protection Services provided to Eligible Persons as defined herein, in accordance with the terms of this Agreement through the assessment and collection of an annual Fire Tax on the property owners of MUDs 1 and 2 2) The Town shall fund all costs associated with Fire Protection Services to Eligible Persons by an annual assessment on and collection from Eligible Persons owning real property and improvements thereon located within the Town but not within MUDs 1 or 2; said assessment to be equal to the Fire Tax paid by the property owners of MUD 1. 3) The proportionate share of costs to be paid by each entity in any given year shall be arrived at as follows: Each year, the budget for Fire Protection Services shall consist of the total of the annual cost of maintenance and operation of the Fire Protection Services and debt service. This total shall be divided by the total of the assessed values of MUD 1, MUD 2 and the assessed values of real property and improvements thereon owned by Eligible Persons and located within the corporate boundaries of the Town but not within MUDs 1 or 2. The proportionate share of the budget attributable to each shall be the proportion which the assessed valuation of each bears to the combined assessed valuations of all three. C. The funds so assessed and collected shall be combined and shall be disbursed for the Fire Protection of all Eligible Persons, as defined above. IV. Consideration The parties agree that sufficient consideration for this Agreement exists and is found in the cross promises set forth above. Each party hereto paying for the performance of Fire Protection Services shall make such payments from current revenues legally available to the paying party. V. Default / Termination 5.01 In the event that any party hereto breaches any term or condition of this Agreement, this Agreement may be terminated by the aggrieved party if such default is not cured within a period of thirty (30) days after receipt of written notice of default by the party allegedly in breach of its obligations hereunder. At the option of the aggrieved party, if such default is not cured within the thirty (30) day period, this agreement shall immediately terminate without further notice. 5.02 Notwithstanding the foregoing, this agreement may be terminated at any time without cause by any party giving sixty (60) days advance written notice to the other parties. VI. Entire Agreement This Agreement represents the entire and integrated agreement between the Town and MUDs 1 and 2 and supersedes all prior negotiations, representations and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both parties. VII. Venue The laws of the State of Texas shall govern this Agreement and each of its terms and provisions, including but not limited to, the rights and duties of the parties hereto, and exclusive venue shall be in Denton County, Texas. VIII. Severability In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. IX. Non-Waiver All rights, remedies and privileges permitted or available to any party under this Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy or privilege shall not constitute a waiver or exclusive election of rights, remedies or privileges with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by any party in the enforcement of any such right, remedy or privilege against one or more of the other parties, shall not constitute a waiver of such right, remedy or privilege by the forbearing party. X. Signature Authority The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto and each party hereby certifies to the other that any necessary resolutions extending such authority have been duly passed and are now in full force and effect. EXECUTED in triplicate originals this, the _____ day of ________________, 2008. TOWN OF TROPHY CLUB, TEXAS By____________________________ C. Nick Sanders, Mayor ATTEST: ______________________________ Town Secretary APPROVED AS TO FORM: ______________________________ Town Attorney TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 By_________________________ Dean Henry, President MUD 1 ATTEST: ______________________________ Constance S White, MUD 1 Secretary APPROVED AS TO FORM: ___________________________ Robert G. West, MUD 1 Attorney TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2 By_________________________ Jim Budarf, President MUD 2 ATTEST: ______________________________ James C. Thomas, MUD 2 Secretary APPROVED AS TO FORM: ___________________________ Pam Liston, MUD 2 Attorney ACKNOWLEDGMENTS STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the ___ day of ________________, 2008 by C. Nick Sanders, Mayor, Town of Trophy Club, Texas, on behalf of such entity. ______________________________ Notary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the ___ day of __________________, 2008 by Dean Henry, President of TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, on behalf of such corporation. ________________________________ Notary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the ___ day of __________________, 2008 by Jim Budarf, President of TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2, on behalf of such corporation. ________________________________ Notary Public in and for the State of Texas MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.B.10 Discuss and take appropriate action regarding proposed agreement entitled “Agreement for Division of Rent for Fire Department Facilities” to govern the division of the Public Improvement Development (PID) portion of the funds to be paid toward the rent of the fire station. EXPLANATION: RECOMMENDATION: ACTION BY MUD 2: (pl) Attachments: 1. Agreement STATE OF TEXAS ) COUNTY OF DENTON) AGREEMENT FOR DIVISION OF RENT FOR FIRE DEPARTMENT FACILITIES THIS AGREEMENT is made and entered into this ____ day of _________, 2008, by and between Trophy Club Municipal Utility District No. 1, a District created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54 (hereinafter referred to as “MUD1”) AND Trophy Club Municipal Utility District No. 2, a District created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54 (hereinafter referred to as “MUD2”). W I T N E S S E T H : WHEREAS, MUD1 and MUD2 are duly organized political subdivisions of the State of Texas enabled to provide fire protection services pursuant to state law; and WHEREAS, MUD1 and MUD2 have created the Master District which is comprised of the directors of both MUD1 and MUD2 to oversee the joint operations of MUD1 and MUD2; and WHEREAS, the Master District oversees the operations of the fire protection services; and WHEREAS, the Town of Trophy Club (“Town”) has established a Public Improvement District (“PID”) within the boundaries of the Town; and WHEREAS, the Town has contracted with the Master District to provide fire protection services to the PID; and WHEREAS, a PID assessment will be paid to the Town by each household of the PID; and WHEREAS, a portion of the PID assessment collected by the Town will be allocated to the Fire Department Fund of the Master District for the fire protection services of the PID; and WHEREAS, the amount of the PID assessment allocated for fire protection services will be an amount equal to the portion of the MUD1 and MUD2 tax rate for fire protection operations and maintenance (“fire tax”); and WHEREAS, the receipts from the fire tax of MUD1 and MUD2 and the PID assessment equal to the fire tax shall be placed into the Master District Fire Department Operations and Maintenance Fund; and WHEREAS, an amount based on the total amount for the construction of the fire station spread over 20 years (“Rent”) will be paid annually from the Master District Fire Department Operations and Maintenance Fund as rent for the fire department facilities; NOW, THEREFORE, for and in consideration of the recitals set forth above and with incorporation of those recitals into this agreement, and pursuant to the terms and conditions below, MUD1 and MUD2 agree as follows: Section 1. That the annual payment of Rent from the Master District Fire Department Operations and Maintenance Fund shall be split equally (50/50) between MUD1 and MUD2 and be deposited into the MUD1 and MUD2 Operations and Maintenance Funds; Section 2. This Agreement represents the entire agreement between MUD1 and MUD2 on the issue of division of Rent for the fire department facilities and supersedes all prior negotiations, representations and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both parties. This does not alter any other agreements between the MUDs. Section 3. The laws of the State of Texas shall govern this Agreement and each of its terms and provisions, including but not limited to the rights and duties of the parties hereto, and exclusive venue shall be in Denton County, Texas. Section 4. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. Section 5. The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto and each party hereby certifies to the other that any necessary resolutions granting such authority have been duly passed and are now in full force and effect. EXECUTED in duplicate originals this the _____ day of ________________, 2008. TROPHY CLUB MUNICIPAL UTILITY TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 DISTRICT NO. 2 By: ____________________________ By: ____________________ _____ Dean Henry, President James Budarf, President ATTEST: ATTEST: ______________________________ ________________________________ MUD1 Secretary MUD2 Secretary APPROVED AS TO FORM: APPROVED AS TO FORM: ______________________________ ________________________________ MUD1 Attorney MUD2 Attorney MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.C.1 Receive District Manager's Report a. Items for future agenda (mm) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.C.2 Receive Finance Director's Report a. Audit Preparation/Committee Selection EXPLANATION: RECOMMENDATION: ACTION BY MUD1: (smd) MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.D.1 Review and Approve Minutes a. August 12, 2008 - Regular Session minutes EXPLANATION: RECOMMENDATION: ACTION BY MUD1: (mm) Attachments: 1. Minutes MINUTES OF REGULAR SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 August 12, 2008 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Regular Session on Tuesday, August 12, 2008, at 6:00 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Dean Henry President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director DIRECTORS ABSENT: Gary Cantrell Vice President STAFF AND GUESTS PRESENT: Walter Fitzpatrick District Manager Danny Thomas Fire Chief Sakura Dedrick Finance Director Stephanie Gohlke Financial Analyst Mary Moore Recording Secretary Bob West Attorney Bob Radder 1 Lee Court REGULAR SESSION A.1 Call Meeting to Order. President Henry announced a quorum and called the meeting to order at 6:00 p.m. A.2 Public Comments or Presentations. No public comments. B.1 Present and discuss 2008 Certified Appraisal Records and Rollback Tax Rate Calculation. Finance Director Dedrick advised the Board of their roll back tax rate, which is .10787, a decrease from last year’s amount of .11; adding that the average home value has gone up. Commercial value has not been included in the past; however, that may change in the future. Discussion only; no action taken. B.2 Review and discuss FY08-09 Preliminary Budget. Finance Director Dedrick distributed the 2008-09 preliminary budget to the Board at the meeting and discussed same. The Board requested legal be increased from one hour a month to three hours a month. Director Twomey suggested buying down the Interest and Sinking (I & S) with the budget surplus from Operations and Maintenance (O & M) for this one year. Director Twomey added that if you artificially lower the O & M, it negatively affects the following year’s roll-back amount. Finance Director advised it would cost $121,000 to buy down to a tax rate of .23 cents, adding that the fire tax rate cannot be bought down. Discussion only with no action taken. B.3 Discuss and take appropriate action to announce the placement of a proposal to adopt a 2008 Tax Rate on the September 9, 2008 Municipal Utility District No. 1 public meeting agenda as an action item, and announce a Public Hearing on same date regarding the adoption of the Fiscal Year 2008-2009 MUD 1 Budget. Director Henry moved to announce both the placement of a proposal to adopt a 2008 Tax Rate on the September 9, 2008 MUD 1 agenda, and a Public Hearing for adoption of the fiscal year 2008-09 MUD 1 budget. Director Twomey seconded the motion. Motion passed unanimously. B.4 Discuss and take appropriate action to declare MUD 1’s position that the fire station, as it is now and as it may be improved in accordance with pending plans, is to remain in its present location. Tabled from July meeting for further discussion and possible action. Director Hase distributed a handout, asking if we want a traditional fire department or a public safety department. Also, does it make economic sense to seek some type of fire affiliation with any of the surrounding entities? And, with the appraisals coming in so high, would we better advised to simply go forward with the new fire station at its current site? Director White believes we are not talking about creating a Public Safety Department, but rather housing two departments, Fire and Police, in one building. Director Hase asked if there is really any cost savings versus redoing the architectural. His feeling is that it is not realistic to consider acquiring additional property to build a fire-police building, as appraisals have come in at $1 million for the property. Director White has talked with the people at the church, and they are willing to discuss the possibilities of utilizing their property. Director Hase does not see any advantage for MUD 1 to acquire additional property for a new fire station. President Henry concurred. Director Twomey is concerned about the cost of materials, as they are rising quickly. He would like to get further clarification at the Master District meeting from Town Manager Emmons as to the current status with regard to efforts to acquire additional property for a Police-Fire station. Board agreed to table this item to their September meeting. B.5 Discuss and take appropriate action regarding a proposed Interlocal Cooperation Agreement for Fire Protection Services between the Municipal Utility Districts and the Town with particular emphasis on that portion thereof referring to the establishment of the assessment to be paid for Fire Protection by those persons not in either MUD. The Board advised that Attorney Liston is working on an additional contract between MUD 1 and 2, which is related to this Interlocal Agreement. As such, the Board agreed to table this item to their September meeting. Board agreed to move Agenda Item B.6 to follow Agenda Item D.5. C.1 Receive District Manager's Report a. Items for future agenda District Manager Fitzpatrick had nothing to report. C.2 Receive Finance Director's Report Finance Director Dedrick had nothing to report. D.1 Review and Approve Minutes a. July 8, 2008 – Regular Session Director Hase moved to approve the minutes for July 8, 2008. Director Twomey seconded the motion. Motion carried unanimously. D.2 Review and Approve Disbursements and Variance Report a. June 2008 Director Twomey moved to approve the June 2008 Disbursements and Variance Report, as presented. Director Hase seconded the motion. Motion carried unanimously. D.3 Review Monthly Tax Collection Report a. June 2008 Board reviewed the June Tax Collection Report with no action taken. Attorney West advised MUD 1 has received a significant tax property payment of $16,000 for a home on Spyglass. D.4 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, September 9, 2008, 6:00 p.m. The Board agreed to meet on Tuesday, September 9, 2008, 6:00 p.m. D.5 Items for Future Agenda 1. Director Twomey – Policy on reserves for MUD 1, before end of calendar year - November or December. B.6 Discussion regarding possible consolidation of the Town of Trophy Club and the Municipal Utility Districts. Board agreed to go into Closed Session to discuss this item. CLOSED SESSION Board went into Closed Session at 8:05 for Attorney consultation regarding Agenda Item B.6. Pursuant to Chapter 551.071 of the Texas Government Code to conduct a private consultation with its attorney on the following matter in which the duty of the attorney to the District under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the Texas Open Meetings Act: To seek advice of the attorney concerning possible consolidation of the Town of Trophy Club and the Municipal Utility Districts. OPEN SESSION Board went into Open Session at 8:17. B.6 Discussion regarding possible consolidation of the Town of Trophy Club and the Municipal Utility Districts. Discussion only with no action. F.1 Adjourn. Meeting adjourned at 8:18 p.m. _________________________________ Dean Henry, President (SEAL) ____________________________________ Constance S. White, Secretary/Treasurer ______________________________________ Mary Moore, Recording Secretary MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.D.2 Review and Approve Disbursements and Variance Report a. July 2008 EXPLANATION: RECOMMENDATION: ACTION BY MUD1: (smd) Attachments: Variance Report MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.D.3 Review Monthly Tax Collection Report a. July 2008 EXPLANATION: RECOMMENDATION: ACTION BY MUD1: (mm) Attachments: 1.Tax Collection Report MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.D.4 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, October 7, 2008, 6:00 p.m. EXPLANATION: Trophy Club Calendar of Events October 2008 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 •Warning Siren •Citizens Police Academy •P & Z 3 4 •Garage Sale Testing 5 6 •Commissioner's Replay •Town Council 7 •National Night Out •Council Replay •Parks & Rec 8 9 •Citizens Police Academy •Council Replay 10 •Council Replay 11 •Council Replay 12 13 •Commissioner's Replay •EDC B 14 •Tree Board 15 16 •Citizens Police Academy •P & Z 17 18 •Fall Festival 19 20 •Commissioner's Replay •Town Council 21 •ZBA •Council Replay 22 23 •You Can Paint, I •Citizens Police AcademyPromise •Council Replay 24 •Council Replay 25 •Early Voting •Council Replay 26 27 •Early Voting •Commissioner's Replay •EDC A 28 •Early Voting •General Election •Citizens Police Academy 29 30 •Early Voting •Early Voting •General Election •General Election •Citizens Police Academy 31 •Early Voting •General Election MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 9-9-2008 Subject: Agenda Item No.F.1 Adjourn. 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