CC Resolution No. 2922 RESOLUTION NO. 2922
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAYTOWN. TEXAS. ACCEPTING THE PRELIMINARY
SERVICE AND ASSESSMENT PLAN FOR THE BAY CREEK
PUBLIC IMPROVEMENT DISTRICT, SETTING A DATE FOR
PUBLIC HEARING ON THE PROPOSED LEVY OF
ASSESSMENTS; AUTHORIZING THE PUBLICATION AND
MAILING OF NOTICE: AND ENACTING OTHER
PROVISIONS RELATING THERETO.
Whereas. the City Council (the "City Council") of the City of Baytown. Texas (the"City")
received a petition (the "Petition") requesting creation of a public improvement district (the
"District") under Chapter 372 of the Texas Local Government Code (the "Act"). from the record
owners of taxable real property representing more than fifty percent ("50%")of the appraised value
of the real property liable for assessment (as determined by the most recent certified tax roll) in
the proposed District and the record owners of taxable real property that constitute more than 50%
of all of the area of all taxable real property that is liable for assessment in the proposed District:
AND
WHEREAS. on June 24, 2021. the City Council approved a resolution (the "Resolution")
to provide for a public hearing date on July 22. 2021 to consider the creation of the District. and
WHEREAS. notice of the hearing was published in a newspaper of general circulation in
the City in which the District is to be located on July 4. 2021: and.
WHEREAS. on .tune 28, 2021. notice to the owners of property within the proposed
District was sent by first-class mail to the owners of 100% of the property subject to assessment
under the proposed District containing the information required by the Act such that such owners
had actual knowledge of the public hearing to be held on July 22. 2021: and
WHEREAS. the City Council approved the creation of the District by Resolution approved
on Julv 22. 2021 (the " Creation Resolution") and published the Creation Resolution as authorized
by the Act: and
WHEREAS. the District is to be developed in phases and assessments are anticipated to be
levied in each development phase (each a "Phase"), and
WHEREAS. the City has previously levied assessments on property within Phase#1 of the
District for certain public improvement benefitting Phase #1 of the District: and
WHEREAS, pursuant to Sections 372.013, 372.014, and 372.016 of the Act, the City
Council has directed the preparation of a Preliminary Amended and Restated Service and
Assessment Plan (the "Preliminary Plan"), for the levy of assessments for certain public
improvement projects (the "Phase #1 Projects") that benefit Phase #1 of the District (the
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1.1 l-=l 0337130.3
"Assessments") such Preliminary Plan attached hereto as Exhibit B,covers a period of at least five
years and defines the annual indebtedness and the projected costs of the Phase #1 Projects within
the District; and
WHEREAS,the Preliminary Plan also includes assessment plans that apportion the cost of
an Phase #1 Projects to be assessed against property within Phase #1 of the District and such
apportionment is made on the basis of special benefits accruing to the assessed property within
Phase #1 of the District because of the Phase #1 Projects; and
WHEREAS, the City Council also directed the preparation of an assessment roll for the
District that states the assessment for the Phase#1 Projects against each parcel of land within Phase
#1 of the District(the"Phase#1 Assessment Roll")and such Phase#1 Assessment Roll is attached
to and a part of the Preliminary Plan; and
WHEREAS, after determining the total costs of the Phase #1 Projects, the City Council
notes that the Preliminary Plan and proposed Phase #1 Assessment Roll may be changed as the
City Council deems appropriate before such Preliminary Plan and Phase #1 Assessment Roll are
adopted as final by the City Council; and
WHEREAS, the City has determined to call a public hearing regarding the proposed levy
of Assessments pursuant to the Preliminary Plan and the proposed Phase #1 Assessment Roll on
property within Phase #1 of the District, pursuant to Section 372.016 of the Act; and
WHEREAS, the City desires to publish and mail notice of such public hearing in order to
provide notice to all interested parties of the City's proposed levy of Assessments against such
property in Phase #1 of the District, pursuant to Section 372.016 of the Act; and
WHEREAS, the City desires to file the Preliminary Plan and Phase #1 Assessment Roll
with the City Secretary such that they are available for public inspection pursuant to Section
372.016 of the Act.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF BAYTOWN, TEXAS,THAT:
Section 1. Findings. The findings and determinations set forth in the preambles hereto
are hereby incorporated by reference for all purposes.
Section 2. Calling Public Hearing. The City Council hereby calls a public hearing(the
"Public Hearing") for 6:00 p.m. on June 27, 2024 at the regular meeting place of the City, the City
Council Chamber at Baytown City Hall, 2401 Market Street, Baytown, Texas 77522, to consider
approving the Preliminary Plan, with such changes and amendments as the City Council deems
necessary, and the proposed Phase#1 Assessment Roll with such amendments to the Assessments
on any parcel as the City Council deems necessary, as the final Service and Assessment Plan (the
"Final Plan") and final Phase #1 Assessment Roll (the "Final Roll") for Phase #1 of the District.
After all objections made at such hearing have been heard, the City Council may (i) levy the
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IM—:o 1033'130 3
Assessments as special assessments against each parcel of property in Phase #1 of the District as
set forth in the Final Plan, including the Final Roll; (ii) specify the method of payment of the
Assessments; and (iii) provide that Assessments be paid in periodic installments. Notice of the
Public Hearing setting out the matters required by Section 372.016 of the Act shall be given by
publication at least eleven (11) days before the date of the hearing, in a newspaper of general
circulation in the City. Notice of such hearing shall also be given by the City Secretary,by mailing
a copy of the notice containing the information required by Section 372.016(b) of the Act to the
last known address of each owner of property liable for an Assessment in the proposed Final Roll
as reflected on the tax rolls of the Harris County Appraisal District. All residents and property
owners within Phase#1 of the District,and all other persons,are hereby invited to appear in person,
or by their attorney, and contend for or contest the Preliminary Plan and the Final Roll, and the
proposed assessments and offer testimony pertinent to any issue presented on the amount of the
Assessments, purpose of the Assessments, special benefit of the Assessments, and the costs of
collection and the penalties and interest on delinquent Assessments. At or on the adjournment of
the hearing conducted pursuant to Section 372.016 on the proposed Assessments,the City Council
must hear and pass on any objection to a proposed Assessment. The City Council may amend a
proposed Assessment on any parcel in the District. The failure of a property owner to receive
notice does not invalidate the proceeding.
Section 3. Publication of Notice. The City Council hereby directs the City Secretary
to cause the publication and mailing of notice of the Public Hearing substantially in the form
attached as Exhibit A. Such publication shall occur before the 10th day before the date of the
Public Hearing.
Section 4. Conduct of Public Hearing. The City Council shall convene at the location
and at the time specified in the notice described above for the Public Hearing and shall conduct
the Public Hearing in connection with its consideration of the Final Plan, including the Final Roll,
for Phase#1 of the District and the levy of the proposed Assessments, including costs of collection,
penalties and interest on delinquent Assessments. At the Public Hearing, the City Council will
hear and pass on any objections to the Preliminary Plan and the proposed Assessment Roll and the
levy of the proposed Assessments (which objections may be written or oral). At or on the
adjournment of the Public Hearing, the City Council may amend a proposed Assessment on any
parcel in Phase #1 of the District. After all objections, if any, have been heard and passed upon,
the City may (i) levy the Assessments as special assessments against each parcel of property in
Phase #1 of the District as set forth in the Final Plan and Final Roll for Phase #1 of the District,
(ii) specify the method of payment of the assessments, and (iii) provide that the Assessments be
paid in periodic installments.
Section 5. Filingof f Proposed Assessment Roll. The proposed Final Roll shall be filed
in the office of the City Secretary and be made available to any member of the public who wishes
to inspect the same.
Section 6. Further Action. The City Secretary is hereby authorized and directed to
take such other actions as are required,including providing notice of the Public Hearing as required
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by the Texas Open Meetings Act and placing the Public Hearing on the agenda for the June 27,
2024 meeting of the City Council.
[Signature Page Follows]
IM-u10337130 3
DULY RESOLVED by the City Council of the City of Baytown, Texas, on the 23rd day
of May, 2024.
ayor
A TEST:
APPROV
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ler _�1 °a City Attorney
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Signature Page to Resolution Accepting PSAP
EXHIBIT A
CITY OF BAYTOWN
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN THAT a public hearing will be conducted by the City
Council of the City of Baytown, Texas for 6:00 p.m. on June 27,2024 at the regular meeting place
of the City, the City Council Chamber at Baytown City Hall, 2401 Market Street, Baytown, Texas
77522. The public hearing will be held to consider proposed assessments to be levied against
certain assessable property in Phase #1 of the Bay Creek Public Improvement District (the
"District") pursuant to the provisions of Chapter 372 of the Texas Local Government Code, as
amended (the "Act").
The general nature of the proposed public improvements (collectively, the "Authorized
Improvements") may include: (i) street and roadway improvements, including related sidewalks,
drainage, utility relocation, signalization, landscaping, lighting, signage, off-street parking and
right-of-way; (ii)establishment or improvement of parks and open space,together with the design,
construction and maintenance of any ancillary structures, features or amenities such as trails,
playgrounds, walkways, lighting and any similar items located therein; (iii) sidewalks and
landscaping, including entry monuments and features, fountains, lighting and signage; (iv)
acquisition, construction, and improvement of water, wastewater and drainage improvements and
facilities; (v) projects similar to those listed in subsections (i) - (iv) above authorized by the Act,
including similar off-site projects that provide a benefit to the property within the District; (vi)
special supplemental services for improvement and promotion of the District; (vii) payment of
costs associated with operating and maintaining the public improvements listed in subparagraphs
(i) — (v) above; and (viii) payment of costs associated with developing and financing the public
improvements listed in subparagraphs (i) - (v) above, and costs of establishing, administering and
operating the District. These Authorized Improvements shall promote the interests of the City and
confer a special benefit upon Phase #1 of the District.
The estimated cost to design,acquire and construct the Authorized Improvements,together
with bond issuance costs, eligible legal and financial fees, eligible credit enhancement costs and
eligible costs incurred in the establishment, administration and operation of the District is
$20,000,000. The City will pay no costs of the Authorized Improvements, supplemental services
or operation and maintenance costs from funds other than assessments levied on property within
the District. The remaining costs of the proposed improvements will be paid from sources other
than those described above.
The proposed District is composed of approximately 70 acres located generally 1.4 miles
north of Interstate 10 and bounded by the east by Ellis Branch creek and the west by North Main
Street. A metes and bounds description of the proposed District is available for inspection at the
City Secretary's office at Baytown City Hall, 2401 Market Street, Baytown, Texas 77520.
All written or oral objections relating to the levy of the proposed assessments will be
considered at the public hearing.
1M-#10337130.3
A copy of the Preliminary Amended and Restated Service and Assessment Plan, including
the proposed Assessment Roll, for Phase #1 of the District, which includes the Assessments to be
levied against each parcel in Phase#1 of the District is available for public inspection at the office
of the City Secretary, 2401 Market Street, Baytown, Texas 77520.
IM-410337130.3
EXHIBIT B
PRELIMINARY SERVICE AND ASSESSMENT PLAN
IM410337130.3
BAY CREEK
PUBLIC IMPROVEMENT DISTRICT
CITY OF BAYTOWN, TEXAS
PRELIMINARY SERVICE AND ASSESSMENT PLAN
2024
PREPARED BY:
MLINICAP, INC.
PUBLIC FINANCE
BAY CREEK
PUBLIC IMPROVEMENT DISTRICT
PRELIMINARY SERVICE AND ASSESSMENT PLAN
TABLE OF CONTENTS
I. PLAN DESCRIPTION AND DEFINED TERMS........................................................... 4
A. INTRODI CTION............................................................................................................................4
B. DvFINLf10NS................................................................................................................................5
If. PROPERTI INCLLDED IN THE PID ......................................................................11
A. PROPF.RTI IN(Ll DFD IN THE PID..............................................................................................11
B. PROPER I 1 INCI.I DI 1)IN PHASE:#1.............................................................................................11
C. PROPER IN INCLL DFD IN Ft'Ft RE PHASES.................................................................................12
I1I. DESCRIPTION OF THE AUTHORIZED IMPROVEMENTS.........................................13
A. At THoRIzED I.NIPROI'LNIFNT OVERVIEII..................................................................................13
B. DES('RIPTIONS AND Bt DGETLD COSTS OF MAJOR INIPROI LIILN I S..........................................14
C. DF.S('RIPTIONS AND COSTS OF PHASE#1 At 7 HORI/FD INIPROI FMFN7 S....................................15
D. FUTA RE PHASES........................................................................................................................17
IV. SERVICE PLAN.............................................................................................. .........18
A. PRO.IFCTFD SOURCES AND USES OF Ft NDS................................................................................18
B. PROJECTED FIVE-YEAR SERVICE PLAN....................................................................................19
C. PID ASSLSSIIFN 1 NoI Ic'E.........................................................................................................20
V.ASSESSMENT PLAN ...................................................................................................21
A. INTRODI.CIION..........................................................................................................................21
B. SPL:CIAL BENEFI'I ......................................................................................................................22
C. ALLOCATION OF COSTS TO ASSESSED PROPFR I l .....................................................................24
D. ASSESSMENT METHODOLOGY...................................................................................................25
E. ASSEssNIL:NTS............................................................................................................................26
F. ADMINISTRATIVE E\PLNSES......................................................................................................26
VI.TERMS OF THE ASSESSMENTS .................................................................................27
A. AmotN 1'of AssLssmENTS AND ANNI.AL INSTALLMEN'IS FOR P.%R(L:LS LOCATED WITHIN
PHASE# 1 .................................................................................................................................27
B. A1101 KT OF ASSESSMENTS AND ANNI AL INSTAI.L.NIFN'TS FOR PARCELs LO(\TED WITHIN
Furt'RE PHASES.......................................................................................................................27
C. REALLOCATION OF ASSESSNIFNTS.............................................................................................27
D. MANDATORY PREPAYMENT OF ASSL.SSMILNTS...........................................................................28
E. REDI'C['ION OF ASSESSMENTS...................................................................................................28
F. PAYMENT OF ASSESSMENTS.......................................................................................................29
G. COLLECTION OF ANNI'A1.INSTAL LNIFNTS.................................................................................31
VII.THE ASSESSMENT ROLL........................................................................................32
A. PHASE.#1 ASSESSMENT ROI.1.....................................................................................................32
B. FUTURE PHASES ASSESSMENT ROLL.........................................................................................32
C. ANNUAL.ASSESSMENT ROIL.UPDATES......................................................................................33
VIII. MISCELLANEOUS PROVISIONS............................................................................34
A. ADMINISIRMNEREDIENN.........................................................................................................34
B. TLRNII\.11[ON ON ASSESSNIEN'rS ...............................................................................................34
C. ANIE\DAIF\TS............................................................................................................................34
D. ADDIINISrRk110%, AND IN'IFRPRIIAI ION OI PROVISIONS.........................................................35
E. SL%EPUBILI I') ...........................................................................................................................35
APPENDIX A-PID MAP
APPENDIX B- Bl DGETED COSTS OF THE Al THORIZED IMPROVEMENTS
APPENDIX C-LEGAL DESCRIPTION
APPENDIX D- DIAGRAMS OF THE AUTHORIZED IMPROVEMENTS
APPENDIX E-PID ASSESSMENT NOTICE
APPENDIX F- ASSESSMENT PER UNIT,PROJECTED LEVERAGE AND PROJECTED TAX
RATE EQl IVALENTS
APPENDIX G-PROPOSED PHASE#1 ASSESSMEvr ROLL
L PLAN DESCRIPTIONAND DEFINED TERMS
A. I\TRODI CTIOn
On October 14, 2021, the City Council of the City of Baytown, Texas passed and approved
Resolution No. 2750 approving and authorizing the creation of the Bay Creek Public Improvement
District (the "PID")to finance the costs of certain public improvements for the benefit of property
in such public improvement district, all of which is located within the City of Baytown.
The property in the PID is proposed to be developed in multiple phases, and the PID will finance
public improvements as the property within the PID is developed. Assessments will be imposed
on all property in the PID for the public improvements that benefit the entire PID and on the
property in each phase for the public improvements to be constructed for the benefit of that phase.
Chapter 372 of the Texas Local Government Code, the "Public Improvement Assessment Act"
(as amended, the "PID Act"), governs the creation and operation of public improvement districts
within the State of Texas. This Bay Creek Public Improvement District Service and Assessment
Plan (the "Service and Assessment Plan") has been prepared in accordance with the PID Act and
specifically Sections 372.013, 372.014, 372.015 and 372.016, which address the requirements of
a service and assessment plan and the assessment roll. According to Section 372.013 of the PID
Act, a service plan "must (1) cover a period of at least five years; (2) define the annual
indebtedness and the projected costs for improvements; and (3) include a copy of the notice form
required by Section 5.014, Property Code."Additionally, the PID act requires that"the governing
body of the municipality or county shall review and update the service plan annually for the
purpose of determining the annual budget for improvements." The service plan is described in
Section IV of this Service and Assessment Plan. The copy of the notice form required by Section
5.014 of the Texas Property Code, as amended, is attached hereto as Appendix E.
Section 372.014 of the PID Act requires that"an assessment plan must be included in the annual
service plan."The assessment plan is described in Section V of this Service and Assessment Plan.
Section 372.015 of the PID Act requires that "the governing body of the municipality or county
shall apportion the cost of an improvement to be assessed against property in an improvement
district." The method of assessing the costs of the Authorized Improvements and apportionment
of such costs to the property in the PID is included in Section V of this Service and Assessment
Plan.
Section 372.016 of the PID Act requires that"after the total cost of an improvement is determined,
the governing body of the municipality or county shall prepare a proposed assessment roll. The
roll must state the assessment against each parcel of land in the district, as determined by the
method of assessment chosen by the municipality or county under this subchapter."The Phase#1
Assessment Roll is included as Appendix G of this Service and Assessment Plan. The
Assessments as shown in the Assessment Roll are based on the method of assessment and
apportionment of costs described in Section V of this Service and Assessment Plan.
MuniCap 14
B. DEFINITIONS
Capitalized terms used herein shall have the meanings ascribed to them as follows:
"Actual Cost(s)" means, with respect to an Authorized Improvement, the demonstrated,
reasonable, allocable, and allowable costs of constructing such Authorized Improvement, as
specified in a Certification for Payment that has been reviewed and approved by the City. Actual
Cost may include (a) the costs for the design, planning, financing, administration, management,
acquisition, installation, construction and or implementation of such Authorized Improvement,
including general contractor construction management fees, if any, (b) the costs of preparing the
construction plans for such Authorized Improvement, (c) the fees paid for obtaining permits,
licenses or other governmental approvals for such Authorized Improvement, (d) the costs for
external professional costs associated with such Authorized Improvement, such as engineering,
geotechnical, surveying, land planning, architectural landscapers, advertising, marketing and
research studies,appraisals,legal,accounting and similar professional services,and property taxes
(e) the costs of all labor, bonds and materials, including equipment and fixtures, incurred by
contractors, builders and material men in connection with the acquisition, construction or
implementation of the Authorized Improvements, (f) all related permitting, zoning and public
approval expenses,architectural, engineering, legal, and consulting fees, financing charges,taxes,
governmental fees and charges (including inspection fees, City permit fees, development fees),
insurance premiums, miscellaneous expenses, and all advances and payments for Administrative
Expenses.
Actual Costs may include general contractor's fees in an amount up to a percentage equal to the
percentage of work completed and accepted by the City or construction management fees in an
amount up to five percent of the eligible Actual Costs described in a Certification for Payment.
The amounts expended on legal costs, taxes, governmental fees, insurance premiums, permits,
financing costs, and appraisals shall be excluded from the base upon which the general contractor
and construction management fees are calculated.
"Additional Interest" means the 0.500'o additional interest rate charged on Assessments (if
applicable) pursuant to Section 327.018 of the PID Act.
"Administrative Expenses" mean the administrative, organization, maintenance and operation
costs associated with, or incident to, the administration, organization, maintenance and operation
of the PID,including,but not limited to,the costs of: (i)creating and organizing the PID, including
conducting hearings, preparing notices and petitions, and all costs incident thereto, including
engineering fees, legal fees and consultant fees, (ii) the annual administrative, organization, and
operation costs and expenses associated with, or incident and allocable to, the administration,
organization, and operation of the PID, (iii) computing, levying, billing and collecting
Assessments or the Annual Installments thereof, (iv)maintaining the record of installments of the
Assessments and the system of registration and transfer of the Bonds, (v) paying and redeeming
the Bonds, (vi) investing or depositing of monies, (vii) complying with the PID Act and other
laws applicable to the Bonds, (viii)the Trustee fees and expenses relating to the Bonds, including
reasonable fees, (ix) legal counsel, engineers, accountants, financial advisors, investment bankers
or other consultants and advisors, and (x) administering the construction of the Authorized
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Improvements. Administrative Expenses do not include payment of the actual principal of,
redemption premium, if any, and interest on the Bonds. Administrative Expenses collected and
not expended for actual Administrative Expenses in one year may be carried forward and applied
to reduce Administrative Expenses in subsequent years to avoid the over-collection of amounts to
pay Administrative Expenses.
"Administrator"means the employee or designee of the City, identified in any indenture of trust
relating to the Bonds or in any other agreement approved by the City Council, who shall have the
responsibilities provided for herein.
"Annual Installment" means, with respect to each Parcel, each annual payment of. (i) the
Assessments including both principal and interest, as shown on the Assessment Rolls attached
hereto Appendix G, or in an Annual Service Plan Update, and calculated as provided in Section
VI of this Service and Assessment Plan, (ii) plus additional interest, upon the issuance of Bonds,
(iii) and the Administrative Expenses.
"Annual Service Plan Update" has the meaning set forth in Section IV.A of this Service and
Assessment Plan.
"Assessed Property" means the property that benefits from the Authorized Improvements to be
provided by the PID on which Assessments have been imposed as shown in each Assessment
Roll, as each Assessment Roll is updated each year by the Annual Service Plan Update. Assessed
Property includes all Parcels within the PID other than Non-Benefited Property.
"Assessment" means an assessment levied against a Parcel or Lot imposed pursuant to an
Assessment Ordinance and the provisions herein, as shown on any Assessment Roll, subject to
reallocation upon the subdivision of such Parcel or reduction according to the provisions herein
and the PID Act.
"Assessment Ordinance" means an Assessment Ordinance adopted by the City Council
approving the Service and Assessment Plan(including amendments or supplements to the Service
and Assessment Plan) and levying the Assessments.
"Assessment Revenues" mean the revenues actually received by or on behalf of the City from the
collection of Assessments.
"Assessment Roll" means the Phase #1 Assessment Roll or any other Assessment Roll in an
amendment or supplement to this Service and Assessment Plan or in an Annual Service Plan
Update.
"Authorized Improvements" mean those public improvements described in Appendix B of this
Service and Assessment Plan and Section 372.003 of the PID Act, constructed and installed in
accordance with this Service and Assessment Plan, and any future updates and/or amendments.
"Bonds" mean bonds, if any, issued by the City in one or more series and secured in whole or in
part by the Assessment Revenues.
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MuniCap 16
"Budgeted Cost(s)" means the amounts budgeted to construct the Authorized Improvements as
used in the preparation of this Service and Assessment Plan.
"City" means the City of Baytown, Texas.
"City Council" means the duly elected governing body of the City.
"County" means Harris County, Texas.
"Delinquent Collection Costs" mean interest, penalties and expenses incurred or imposed with
respect to any delinquent installment of an Assessment in accordance with the PID Act and the
costs related to pursuing collection of a delinquent Assessment and foreclosing the lien against
the Assessed Property, including attorney's fees.
"Developer" means Castlerock Communities, LLC, a Texas limited liability company.
"Development Agreement" means that certain "Development Agreement" relating to the PID
executed by and between the Developer and the City effective October 21, 2021, as the same may
be amended from time to time.
"Future Phase(s)" means Phases that are fully developed after Phase #1, as such areas are
generally depicted and described in Appendix A.
"Future Phase Assessed Property" means all Parcels within the Future Phases other than Non-
Benefited Property.
"Future Phase Bonds" mean bonds issued to fund Future Phase Improvements (or a portion
thereof) in a Future Phase that are secured by Assessments levied on Future Phase Assessed
Property. In connection with Future Phase Bonds,Assessments related to such Future Phase Bonds
will be levied only on property located within the applicable Future Phase to finance Authorized
Improvements which will only benefit such Future Phase.
"Future Phase Improvements" mean those Authorized Improvements which will confer a
special benefit solely related to the Future Phases.
"Homeowner Association" means a homeowner's association or property owners' association
established for the benefit of property owners within the boundaries of the PID.
"Homeowner Association Property" means property within the boundaries of the PID that is
owned by or irrevocably offered for dedication to, whether in fee simple or through an exclusive
use easement, a Homeowner's Association.
"Lot"means a tract of land described as a"lot"in a subdivision plat recorded in the official public
records of the County.
MuniCap 17
"Lot Type" means a classification of final building lots with similar characteristics (e.g.
commercial, light industrial,multifamily residential, single family residential,etc.),as determined
by the Administrator and confirmed by the City Council as shown in Appendix F. In the case of
single family residential lots, the Lot Type shall be further defined by classifying the residential
lots by the estimated average home value for each home at the time of assessment levy,
considering factors such as density, lot size, proximity to amenities,view premiums, location, and
any other factors that may impact the average home value on the lot, as determined by the
Administrator and confirmed by the City Council.
"Major Improvements" mean the Authorized Improvements which benefit all Assessed
Property within the PID and are described in Section III.B.
"Non-Benefited Property" means Parcels that accrue no special benefit from the Authorized
Improvements, Public Property and easements that create an exclusive use for a public utility
provider to the extent they accrue no special benefit. Property identified as Non-Benefited
Property at the time the Assessments (i) are imposed or (ii) are reallocated pursuant to a
subdivision of a Parcel, that is not assessed. Assessed Property converted to Non-Benefited
Property, if the Assessments may not be reallocated pursuant to the provisions herein, remains
subject to the Assessments and requires the Assessments to be prepaid as provided for in Section
VI.D.
"Parcel" or "Parcels" means a parcel or parcels within the PID identified by either a tax map
identification number assigned by the Harris Central Appraisal District for real property tax
purposes or by lot and block number in a final subdivision plat recorded in the real property
records of the County, or by any other means determined by the City.
"Phase" means one or more Parcels within the PID that will be developed in the same general
time period. The Parcels within a Phase will be assessed in connection with the issuance of Bonds
and/or execution of a Reimbursement Agreement for Authorized Improvements (or the portion
thereof) designated in an update to this Service and Assessment Plan that specially benefit the
Parcels within the Phase.
"Phase #1" means the initial Phase to be developed and generally shown in Appendix A, as
specifically depicted and described as the sum of all Parcels shown in Appendix G.
"Phase #1 Assessed Property" means all Parcels within Phase #1 other than Non-Benefited
Property and shown in the Phase#1 Assessment Roll against which an Assessment relating to the
Phase #1 Projects are levied.
"Phase #1 Assessments" mean an assessment levied against a Parcel in Phase #1, for Phase #1
Projects, imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on
the Phase #1 Assessment Roll as Appendix G, subject to reallocation upon the subdivision of such
Parcel or reduction according to the provisions herein and the PID Act.
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"Phase#1 Assessment Revenues"mean the actual revenues received by or on behalf of the City
from the collection of Phase #1 Assessments levied against Phase #1 Assessed Property, or the
Annual Installments thereof, for the Phase #1 Projects.
"Phase#1 Assessment Roll" means the document included in this Service and Assessment Plan
as Appendix G, as updated, modified or amended from time to time in accordance with the
procedures set forth herein and in the PID Act, including updates prepared in connection with the
issuance of Bonds, if any, or in connection with any Annual Service Plan Update.
"Phase #1 Improvements" mean the Authorized Improvements which only benefit Phase #1
Assessed Property, which are described in Section III.C.
"Phase #1 Maximum Assessment Per Unit" means for Phase #1, an Assessment per unit for
Phase #1 Authorized Improvements for each applicable Lot Type as follows:
Lot Type 1 - $35,535.56
Lot Type 2 - $31,641.25
"Phase#1 Projects"mean (i) the pro rata portion of the Major Improvements allocable to Phase
#1, and (ii) the Phase #1 Improvements.
"Phase #1 Reimbursement Agreement" means that certain Bay Creek Public Improvement
District Phase #1 Reimbursement Agreement dated as of , 20_ by and between the
City and the Developer in which the Developer agrees to fund certain Actual Costs of Authorized
Improvements and the City agrees to reimburse the Developer for a portion of such Actual Costs
funded by the Developer with interest as permitted by the PID Act.
"PID" has the meaning set forth in Section I.A of this Service and Assessment Plan.
"PID Act" means Texas Local Government Code Chapter 372, Public Improvement District
Assessment Act, Subchapter A, Public Improvement Districts, as amended.
"Prepayment Costs" mean interest and expenses to the date of prepayment, plus any additional
expenses related to the prepayment, reasonably expected to be incurred by or imposed upon the
City as a result of any prepayment of an Assessment.
"Public Property" means property within the boundaries of the PID that is owned by or
irrevocably offered for dedication to the federal government, the State of Texas, Harris County,
the City,a school district or any other public agency,whether in fee simple or through an exclusive
use easement.
"Reimbursement Agreement" means those certain Reimbursement Agreements by, including
the Phase #1 Reimbursement Agreement, by and between the City and the Developer in which the
City agrees to reimburse the Developer for a portion of those Actual Costs of Authorized
Improvements funded by the Developer, as permitted by the PID Act.
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"Service and Assessment Plan or "SAP" means this Service and Assessment Plan prepared for
the PID pursuant to the PID Act, as the same may be amended from time to time.
"Trustee" means the fiscal agent or trustee as specified in the Trust Indenture, including a
substitute fiscal agent or trustee.
"Trust Indenture" means an indenture of trust, ordinance or similar document setting forth the
terms and other provisions relating to the Bonds, as modified, amended, and.or supplemented
from time to time.
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MuniCap 110
II. PROPERTY INCLUDED IN THE PID
A. PROPERTI INCLI DED IN THE PID
The PID is presently located within the City and contains approximately 76.086 acres of land. A
map of the property within the PID is shown in Appendix A and described in Appendix C to this
Service and Assessment Plan.
At completion,the PID is expected to consist of approximately 272 single family residential units,
landscaping, and infrastructure necessary to provide roadways, drainage, and utilities to the PID.
The estimated number of lots and the classification of each lot are based upon the proposed
development plan.
The property within the PID is proposed to be developed as follows:
Table II-A
Proposed Development
Proposed Development Quantity Measurement
55 Ft Lots 62 Units
50 Ft Lots 210 Units
Total 272 Units
B. PROPERTI INCLUDED IN PHASE#1
Phase #1 consists of approximately 41.954 acres and is projected to consist of 143 single family
residential units, as further described in Section III. A map of the property within Phase �r l is
shown in Appendix A.
The property within Phase #1 is proposed to be developed as follows:
Table II-B
Proposed Development—Phase#1
Proposed Development Quantity Measurement
55 Ft Lots 35 Units
50 Ft Lots 108 Units
Total 143 Units
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MuniCap Ill
C. PROPERT i INCLL DED IN FL TL RE PHASES
As Future Phases are developed, Bonds may be issued and'or additional Reimbursement
Agreements may be executed for each new Phase. In connection with the issuance of a series of
Bonds and`or execution of a Reimbursement Agreement relating to a Future Phase, this Service
and Assessment Plan will be updated to add additional details of each new Phase(s) similar to
what is shown for Phase #1 in Section II.B. A map of the projected property within each Future
Phase is shown in Appendix A. The Future Phases are shown for illustrative purposes only and
are subject to adjustment. The current Parcels in Phase#1 are shown on the Phase #1 Assessment
Roll included as Appendix G.
The estimated number of units at the build-out of the PID is based on the land use approvals for
the property, the anticipated subdivision of property in the PID, and the Developer's estimate of
the highest and best use of the property within the PID.
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MuniCap 112
III. DESCRIPTION OF THE A UTHORIZED IMPROVEMENTS
A. AL THORIZED IMPROVEMENT ON'ERN'IENN
372.003. Authorized Improvements
(a) If the governing body of a municipality or county finds that it promotes the interests of the
municipality or county, the governing body may undertake an improvement project that confers a
special benefit on a definable part of the municipality or county or the municipality's
extraterritorial jurisdiction. A project may be undertaken in the municipality or county or the
municipality's extraterritorial jurisdiction.
(b) A public improvement may include:
(i) landscaping;
(ii) erection of fountains, distinctive lighting, and signs;
(iii) acquiring, constructing, improving, widening, narrowing, closing, or rerouting of
sidewalks or of streets, any other roadways, or their rights-of way;
(iv) construction or improvement of pedestrian malls;
(v) acquisition and installation of pieces of art;
(vi) acquisition, construction, or improvement of libraries;
(vii) acquisition, construction, or improvement of off-street parking facilities;
(viii)acquisition, construction, improvement,or rerouting of mass transportation facilities;
(ix) acquisition, construction, or improvement of water, wastewater, or drainage facilities
or improvements;
(x) the establishment or improvement of parks;
(xi) projects similar to those listed in Subdivisions(i)-(x);
(xii) acquisition, by purchase or otherwise, of real property in connection with an
authorized improvement;
(xiii) special supplemental services for improvement and promotion of the district,
including services relating to advertising, promotion, health and sanitation, water and
wastewater, public safety, security, business recruitment, development, recreation, and
cultural enhancement;
(xiv) payment of expenses incurred in the establishment, administration and operation of
the district; and
(xv)the development, rehabilitation, or expansion of affordable housing
After analyzing the public improvement projects authorized by the PID Act, the City has
determined at this time to undertake only Authorized Improvements listed in Section III.B and
Section III.0 and shown in the opinion of probable costs and on the diagrams of the Authorized
Improvements included as Appendix B and Appendix D, respectively, for the benefit of the
Assessed Property. Any change to the list of Authorized Improvements will require the approval
of the City and an update to this Service and Assessment Plan.
MuniCap 113
B. DESCRIPTIONS AND BUDGETED COSTS OF MAJOR IMPROVEMENTS
The Major Improvements benefit the entire PID. The Budgeted Costs of the Major Improvements
are allocated proportionally throughout the entire PID, excluding Non-Benefited Property, in a
manner that anticipates planned development of the PID based on the anticipated buildout value.
Each of Phase #1 and the Future Phases will be proportionally allocated the costs of the Major
Improvements, as shown in Table III-A.
The Major Improvements descriptions are presented below as provided by the project engineer.
The Budgeted Costs of the Major Improvements are shown in Table III-A. The costs shown in
Table III-A are estimates and may be revised in Annual Service Plan Updates,including such other
improvements as deemed necessary to further improve the properties within the PID.
A description of the Major Improvements follows:
Water Improvements
The water improvement portion of the Major Improvements consists of construction and
installation of waterline mains, valves, and appurtenances, necessary for the water distribution
system that will service the Assessed Property. The water improvements will be designed and
constructed according to City standards and specifications and will be owned and operated by the
City.
San�Sewer Improvements:
The sanitary sewer improvement portion within Phase #1 consist of construction and installation
of pipes, service lines, manholes, encasements, and appurtenances necessary to provide sanitary
sewer service to the Assessed Property. The sanitary sewer improvements will be designed and
constructed according in accordance with City standards and specifications and will be owned and
operated by the City.
Storm Drainage Improvements
The storm drainage improvement portion of the Major Improvements consist of reinforced
concrete pipes, reinforced concrete boxes, multi-reinforced box culverts, junction boxes, inlets,
headwalls, appurtenances, and regional detention necessary to provide adequate drainage to the
Assessed Property. The storm drainage collection system improvements will be designed and
constructed in accordance with City standards and specifications and will be owned and operated
by the City.
Landscaping, Parks, and Trail Improvements:
The detention, landscaping, and trail improvement portion within Phase #1 consists of trailhead,
lighting, water fountains and amenities. The detention, landscaping, and trail improvements will
be designed and constructed according to City standards and will be owned and operated by the
City.
MuniCap 114
Other soft and miscellaneous costs
The soft and miscellaneous costs portion of the Major Improvements consists of engineering and
surveying, project management fees, contingency, PID set up costs, and other soft and
miscellaneous costs.
Table III-A
Budgeted Costs—Major Improvements
Total Major
Improvement Phase#1 Allocated Future Phases
Authorized Improvements Costs' Amount' Allocated Amount'
Water improvements $33,098 $17,436 $15,662
Sanitary sewer improvements $1,089,140 $573,752 $515,388
Storm drainage improvements $513,050 $270,271 $242,779
Landscaping, parks, and trails improvements $2,000.000 $1,053,587 $946,413
Other soft and miscellaneous costs $57,467 $30,273 $27,194
Total Authorized Improvements $3,692,754 $1,945,319 $1,747,435
1 - The Budgeted Costs are certified and provided by CobbFendley. The figures shown in Table III-A represent the Budgeted Costs of
the Major Improvements, are rounded,and may be reallocated between line items. At this time,the City is levying Assessments for the
costs of the Major Improvements allocated to Phase r.1,only,and is not levying Assessments for the costs of the Major Improvements
allocated to Future Phases,though such costs may be levied for as part of Future Phases levies.
2-Allocation of Major Improvements are based on the methodologies described in V.0 and shown in Table V.A.
C. DESCRIPTIONS AND COSTS OF PHASE#1 At THORIZED IMPROVEMENTS
The Phase#1 Improvements descriptions are presented below as provided by the project engineer.
The Budgeted Costs of the Phase #1 Projects are shown in Table III-B. The costs shown in Table
III-B are estimates and may be revised in Annual Service Plan Updates, including such other
improvements as deemed necessary to further improve the properties within the PID.
A description of the Phase #1 Improvements are as follows, and a description of the Major
Improvements that are a portion of the Phase#1 Projects can be found in Section III-B above.
Roadway Improvements:
The roadway improvement portion within Phase #1 include construction of perimeter road and
thoroughfare improvements, including related paving, drainage, curbs, gutters, sidewalks,
retaining walls, signage, and traffic control devices. All roadway projects will be designed and
constructed in accordance with City standards and specifications and will be owned and operated
by the City.
Water Improvements:
The water improvement portion within Phase #1 consist of construction and installation of
waterlines, mains, pipes, valves, and appurtenances, necessary for the water distribution system
that will service the Phase #1 Assessed Property. The water improvements will be designed and
MuniCap 115
constructed in accordance with City standards and specifications and will be owned and operated
by the City.
Sanitary Sewer Improvements:
The sanitary sewer improvement portion within Phase #1 consist of construction and installation
of pipes, service lines, manholes, encasements, and appurtenances necessary to provide sanitary
sewer service to the Phase #1 Assessed Property. The sanitary sewer improvements will be
designed and constructed according in accordance with City standards and specifications and will
be owned and operated by the City.
Storm Drainage Improvements:
The storm drainage improvement portion within Phase #l consist of reinforced concrete pipes,
reinforced concrete boxes, and multi-reinforced box culverts. The storm drainage collection
system improvements will be designed and constructed in accordance with City standards and
specifications and will be owned and operated by the City.
Other Soft and Miscellaneous Costs:
The other soft and miscellaneous costs include costs related to general conditions, contractor
overhead, performance bond and insurance, project management fee, contingency, and other soft
costs.
Table III-B
Budgeted Costs - Phase#1 Projects
Phase#1's
Share of Major Phase#1 Total Phase #1
Authorized Improvements Improvements' Improvements2 Projects
Roadway improvements $0 $1,836,970 $1,836,970
Water improvements $17,436 $501,875 $519,310
Sanitary sewer improvements $573,752 $878,638 $1,452,390
Storm drainage improvements $270,271 $1,673,966 $1,944,237
Landscaping, parks, and trails improvements $1,053,587 $0 $1,053,587
Other soft and miscellaneous costs $30,273 $244,572 $274,845
Total $1,945,319 $5,136,021 $7,081,340
1 -See Table III-A. Allocation of Major Improvements are based on the methodologies described in V.0 and shown in
Table V.A.
2-The Budgeted Costs are certified and provided by CobbFendley.
The costs shown in Tables III-B are estimates and may be revised in the Annual Service Plan
Updates. The detailed costs of the Authorized Improvements are shown in Appendix B to this
Service and Assessment Plan. After completion of the Phase#1 Improvements, savings from one
line item may be applied to a cost increase in another line item only upon approval from the City.
These savings may be applied only to increases in costs of the Phase #1 Improvements.
MuniCap 116
D. FLTUREPHASES
As Future Phases are developed and Bonds are issued and/or a Reimbursement Agreement is
executed, this SAP will be amended to identify the specific Authorized Improvements that confer
a special benefit to the property inside each Future Phase(e.g. a Table III-C will be added to show
the costs for the specific Authorized Improvements financed within the specific Future Phase being
developed).
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MuniCap 117
IV. SERVICE PLAN
A. PROJECTED SOURCES AND USES OF FLNDS
The PID Act requires the service plan to cover a period of at least five years. The service plan is
required to define the annual projected costs and indebtedness for the Authorized Improvements
undertaken within the PID during the five-year period. It is anticipated that the Phase #1
Improvements will be completed and accepted by the City in the third quarter of 2024. It is
anticipated that the Major Improvements, including Phase #1's allocable share of the Major
Improvements, will be completed and accepted by the City in the third quarter of 2024.
The Budgeted Costs of the Phase #1 Projects plus costs related to the Phase #1 Reimbursement
Agreement, and payment of expenses incurred in the establishment, administration and operation
of the PID are$7,156,340 as shown in Table IV-A.The service plan shall be reviewed and updated
at least annually for the purpose of determining the annual budget for Administrative Expenses,
updating the Actual Costs of the Authorized Improvements,and updating the Assessment Roll(s).
Any update to this Service and Assessment Plan is herein referred to as an "Annual Service Plan
Update."
As Future Phases are developed in connection with the issuance of Bonds and' or execution of a
Reimbursement Agreement, this Service and Assessment Plan will be amended (e.g., Table IV-B
will be amended to include Phase #2, etc.).
The City may issue Bonds and/or enter into a Reimbursement Agreement with the Developer to
reimburse the Developer for the Actual Costs of the Authorized Improvements constructed,
inspected and approved by the City from Assessment Revenues collected (excluding amounts
collected for Administrative Expenses or Additional Interest). The sources and uses of funds
shown in Table IV-A shall be updated each year in the Annual Service Plan Update to reflect any
budget revisions and Actual Costs.
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MuniCap 118
Table IV-A
Projected Sources and Uses—Phase #1 Projects
Sources of Funds Total
Assessment Amount $4,661,000
Other funding sources $2,495,340
Total Sources $7,156,340
Uses of Funds
Major Improvements2:
Water improvements $17,436
Sanitary sewer improvements $573,752
Storm drainage improvements $270,271
Landscaping, parks, and trails improvements $1,053,587
Other soft and miscellaneous costs $30,273
Subtotal Major Improvement costs $1,945,319
Phase #1 Improvements:
Roadway improvements $1,836,970
Water improvements $501,875
Sanitary sewer improvements $878,638
Storm drainage improvements $1,673,966
Other soft and miscellaneous costs $244,572
Subtotal Phase 41 costs $5,136,021
Other Assessment Related Costs:
Assessment levy fee and first year Administrative Expenses $75,000
Subtotal Other Assessment Related Costs $75,000
Total Uses $7,156,340
1 --Other funding sources include all sources of capital for use at the discretion by the Developer,
except for Bond Proceeds from the PID Bonds.
2 — Includes only Major Improvement costs allocable to Phase #1. See Table III-B for more
details.
3 First year Administrative Expenses are being funded by the Developer.
B. PROJECTED FIX E-YEAR SERVICE PLAN
The annual projected costs and annual projected indebtedness is shown in Table IV-B. The annual
projected costs and indebtedness is subject to revision and each shall be updated in the Annual
Service Plan Update to reflect any changes in the costs or indebtedness expected for each year.
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MuniCap 119
Table IV-B
Annual Projected Costs and Annual Projected Indebtedness
Phase#1
Annual Annual Other Projected
Projected Projected Funding Annual
Year Cost Indebtedness Sources Installments
11 $7,156,340 $4,661,000 $2,495,340 $0
2 $0 $0 $0 $384,279
3 $0 $0 $0 $383,926
4 $0 $0 $0 $384,422
5 $0 $0 $0 $383,709
6 $0 $0 $0 $382,844
7 $0 $0 $0 $382,829
Total $7,156,340 $4,661,000 $2,495,340 $2,302,008
1 First year Administrative Expenses are being funded by the Developer.
The annual projected costs shown in Table IV-B are the annual expenditures relating to the Phase
#1 Projects shown in Table III-A,the costs associated with creating the PID, and other assessment
related costs. The difference between the total projected cost and the total projected indebtedness,
if any, is the amount contributed by the Developer.
C. PID ASSESSIMENT NOTICE
The PID Act requires that this Service and Assessment Plan, and each Annual Service Plan
Update, include a copy of the "PID Assessment Notice" form (required by Section 5.014 of the
Texas Property Code). The PID Assessment Notice is attached hereto as Appendix E and may be
updated in an Annual Service Plan Update.
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MuniCap 120
V. ASSESSMENT PLAN
A. USTRODI CT10\
The PID Act requires the City Council to apportion the costs of the Authorized Improvements on
the basis of special benefits conferred upon the property because of the Authorized Improvements.
The PID Act provides that the costs of the Authorized Improvements may be assessed: (i) equally
per front foot or square foot; (ii) according to the value of the property as determined by the
governing body, with or without regard to improvements on the property; or (iii) in any other
manner that results in imposing equal shares of the cost on property similarly benefited. The PID
Act further provides that the governing body may establish by ordinance or order reasonable
classifications and formulas for the apportionment of the cost between the municipality and the
area to be assessed and the methods of assessing the special benefits for various classes of
improvements.
The proposed Authorized Improvement program anticipates reimbursement agreements
potentially followed by a series of bond financings that are intended to finance the public
infrastructure required for the development. This financing will necessarily be undertaken in
phases to coincide with the private investment and development of the Authorized Improvements.
Following the execution of the Phase #1 Reimbursement Agreement subsequent financings may
be issued and' or executed over the upcoming decade as the subsequent Future Phases are
gradually constructed.
The purpose of this gradual levy of Assessment and related execution of a reimbursement
agreement and or issuance of bonds in phases is to mirror the actual private development of the
Authorized Improvements. The levy of Assessment and related execution of a reimbursement
agreement and/ or issuance of bonds are most prudently and efficiently utilized when directly
coinciding with construction of public infrastructure needed for private development that is to
occur once the infrastructure is completed; it is most effective to issue the Bonds and/ or execute
the reimbursement agreement when the infrastructure is needed, not before. Furthermore, there is
no economic advantage, and several disadvantages, to issuing debt and encumbering property
within the PID prior to the need for the Authorized Improvements.
For purposes of this Service and Assessment Plan, the City Council has determined that the costs
of the Major Improvements and Phase#1 Improvements shall be allocated as described below:
1. The costs of the Phase #1 Improvements that only benefit Phase #1 shall be allocated on the
basis of buildout value calculated using the average home price of each Lot Type once such
property is developed,and that such method of allocation will result in the imposition of equal
shares of the costs of the Authorized Improvements to Parcels similarly benefited.
2. The Major Improvement costs are proportionally allocated to Future Phases and Phase #1
Assessed Property based on estimated buildout value calculated using the average home price
for the Future Phases and Phase#I Assessed Property.
MuniCap 121
Table V-A provides the estimated allocation of Budgeted Costs of the Authorized Improvements
constituting Major Improvements.
At this time, it is impossible to determine with absolute certainty the amount of special benefit
each Parcel within Future Phases will receive from the direct Authorized Improvements that will
benefit each individual Phase and that are to be financed with Future Phase Bonds and'or a related
reimbursement agreement. Therefore, Parcels will only be assessed for the special benefits
conferred upon the Parcel at this time because of the Phase �i 1 Projects, as applicable.
In connection with the issuance of Future Phase Bonds and or execution of related reimbursement
agreements, this Service and Assessment Plan will be updated to reflect the special benefit each
Parcel of Phase#1 Assessed Property within a Future Phase receives from the specific Authorized
Improvements funded with those Future Phase Bonds issued and' or reimbursement agreements
executed with respect to that Future Phase. Prior to assessing Parcels located within Future Phases
in connection with issuance of Future Phase Bonds and. or execution of reimbursement
agreements, each owner of the Parcels to be assessed must or
that the Authorized
Improvements to be financed confer a special benefit on their Parcel and must consent to the
imposition of the Assessments to pay for the Actual Costs of such Authorized Improvements.
This section of this Service and Assessment Plan currently (i) describes the special benefit
received by each Parcel within the PID as a result of the Major Improvements and within Phase
#1 as a result of the Phase#1 Improvements,as applicable, (ii)provides the basis and justification
for the determination that this special benefit exceeds the amount of the Assessments to be levied
on the Phase #1 Assessed Property, and (iii) establishes the methodologies by which the City
Council allocates and reallocates the special benefit of the Major Improvements and Phase #1
Improvements,as applicable,to Parcels in a manner that results in equal shares of the Actual Costs
of such improvements being apportioned to Parcels similarly benefited. The determination by the
City Council of the assessment methodologies set forth below is the result of the discretionary
exercise by the City Council of its legislative authority and governmental powers and is conclusive
and binding on the Developer and all future owners and developers of the Phase #1 Assessed
Property.
As Future Phases are developed, in connection with the issuance of Future Phase Bonds an& or
execution of related reimbursement agreements,this Service and Assessment Plan will be updated
based on the City's determination of the assessment methodology for each Future Phase.
B. SPECIAL BENEFIT
Assessed Property must receive a direct and special benefit from the Authorized Improvements,
and this benefit must be equal to or greater than the amount of the Assessments. The Authorized
Improvements are provided specifically for the benefit of the Assessed Property. The Phase #1
Projects (more particularly described in line-item format in Appendix B to this Service and
Assessment Plan) and the costs of issuance and payment of costs incurred in the establishment of
the PID shown in Table IV-A are authorized by the PID Act.These Phase#1 Projects are provided
specifically for the benefit of the Phase#1 Assessed Property.
MuniCap 122
Each owner of the Phase#I Assessed Property has acknowledged that the Phase#1 Projects confer
a special benefit on the Phase #1 Assessed Property and has consented to the imposition of the
Phase #1 Assessments to pay for the Actual Costs associated therewith. Each of the owners is
acting in its interest in consenting to this apportionment and levying of the Phase 41 Assessments
because the special benefit conferred upon the Phase #1 Assessed Property by the Authorized
Improvements exceeds the amount of the Assessments.
The Phase #1 Projects provide a special benefit to the Phase #1 Assessed Property as a result of
the close proximity of these improvements to the Phase #1 Assessed Property and the specific
purpose of these improvements of providing infrastructure for the Phase it 1 Assessed Property. In
other words, Phase #1 Assessed Property could not be used in the manner proposed without the
construction of the Phase #1 Projects. Phase #1 Projects are being provided specifically to meet
the needs of the Phase #1 Assessed Property as required for the proposed use of the property.
The Phase #1 Assessments are being levied to provide the Phase #1 Projects that are required for
the highest and best use of the Phase #1 Assessed Property (i.e., the use of the property that is
most valuable, including any costs associated with that use). Highest and best use can be defined
as "the reasonably probable and legal use of property, which is physically possible, appropriately
supported, financially feasible, and that results in the highest value." (Dictionary of Real Estate
Appraisal, Third Edition.) Phase #1 Projects are expected to be required for the proposed use of
the Phase #1 Assessed Property to be physically possible, appropriately supported, financially
feasible, and maximally productive.
The Developer has evaluated the potential use of the property and has determined that the highest
and best use of the property is the use intended and the legal use for the property as described in
Section 11 of this Service and Assessment Plan. The use of the Phase #1 Assessed Property as
described herein will require the construction of the Phase #1 Projects.
Each owner of the Phase #1 Assessed Property will ratify, confirm, accept, agree to and approve:
(i) the determinations and finding by the City Council as to the special benefits described in this
Service and Assessment Plan and the Assessment Ordinance; (ii)the Service and Assessment Plan
and the Assessment Ordinance, and (iii) the levying of Phase #1 Assessments on the Phase #1
Assessed Property. Use of the Phase #1 Assessed Property as described in this Service and
Assessment Plan and as authorized by the PID Act requires that Phase #1 Projects be acquired,
constructed, installed, and/or improved. Funding the Actual Costs of the Authorized
Improvements through the PID has been determined by the City Council to be the most beneficial
means of doing so. As a result, the Phase #1 Projects result in a special benefit to the Phase #1
Assessed Property,and this special benefit exceeds the amount of the Assessment.This conclusion
is based on and supported by the evidence, information, and testimony provided to the City
Council.
In summary, the Phase #1 Projects result in a special benefit to the Phase #1 Assessed Property
for the following reasons:
1. The Phase 91 Projects are being provided specifically for the use of the Phase #1
Assessed Property, are necessary for the proposed best use of the property and provide a
special benefit to the Phase #1 Assessed Property as a result.
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2. The Developer has consented to the imposition of the Phase #1 Assessments for the
purpose of providing the Authorized Improvements and the Developer is acting in its
interest by consenting to this imposition.
3. The Phase #1 Projects are required for the highest and best use of the property;
4. The highest and best use of the Phase #1 Assessed Property is the use of the Phase #1
Assessed Property that is most valuable (including any costs associated with the use of
the Phase #1 Assessed Property);
5. Financing of the costs of the Phase #1 Projects through the PID is determined to be the
most beneficial means of providing for the Phase #1 Projects; and,
6. As a result, the special benefits to the Phase #1 Assessed Property from the Phase #1
Projects will be equal to or greater than the Phase 41 Assessments
C. ALLOCATION OF COSTS TO ASSESSED PROPERTI
The Major Improvements will provide a special benefit to all property in the PID. Accordingly,
the Budgeted Major Improvement costs must be allocated throughout all Assessed Property in the
PID. Table V-A summarizes the allocation of Budgeted Costs for each type of Major
Improvement. The Budgeted Costs shown in Table V-A are estimates and may be revised in
Annual Service Plan Updates, but the related Assessment may not be increased.
Phase#1 is projected to contain 143 residential units. As shown in Appendix F,the total estimated
buildout value for Phase#1 is calculated as $47,875,000. The Phases are projected to contain 129
residential units resulting in a estimated buildout value of$43,005,000 (i.e. ($365,000 x 27) t
($325,000 x 102) -_ $43,005,000). The total buildout in the PID is, therefore, calculated to be
$90,880,000 (i.e., $47,875,000 + $43,005,000 = $90,880,000). As a result, 52.68 percent of the
Budgeted Costs of the Major Improvements (i.e. $47,875,000 - $90,880,000 = 52.68%) are
allocated to the Phase#1 Assessed Property and 47.32 percent of the Budgeted Costs of the Major
Improvements (i.e. $43,005,000 - $90,880,000 47.32%)are allocated to the Future Phases. The
Phase #1 Reimbursement Agreement will fund Phase #1's proportionate share of the Budgeted
Costs of the Major Improvements. One hundred percent (100%) of the Phase #1 Improvements
are allocated to the Phase #1 Assessed Property.
MuniCap 124
Table V-A
Allocation of Major Improvement Costs
Budgeted
Authorized Improvement Costs
Water improvements $33,098
Sanitary sewer improvements $1,089,140
Storm drainage improvements $513,050
Landscaping, parks, and trails improvements $2,000,000
Other soft and miscellaneous costs $57,467
Total Major Improvements $3,692,754
Phase#1
Projected buildout value $47,875,000
% of total buildout valuel 52.68%
Proportionate share of costs $1,945,319
Future Phases
Projected buildout value $43,005,000
% of total buildout valuel 47.32%
Proportionate share of costs $1,747,435
1 - Percentages shown are rounded to two decimal places, and calculations are based on
unrounded values.
D. ASSESSMENT METHODOLOGY
The costs of the Authorized Improvements may be assessed by the City Council against the Phase
#1 Assessed Property so long as the special benefit conferred upon the Phase#1 Assessed Property
by the Authorized Improvements equals or exceeds the Assessments. The costs of the Authorized
Improvements may be assessed using any methodology that results in the imposition of equal
shares of the Actual Costs on Phase #1 Assessed Property similarly benefited.
1. Assessment Methodology for Phase #1 Projects
For purpose of this Service and Assessment Plan, the City Council has determined that the Actual
Costs of the Phase#1 Projects to be financed by the Developer under the Phase#1 Reimbursement
Agreement, shall be allocated to the Phase #1 Assessed Property by spreading the entire
Assessment across the Parcels based on the ratio of the estimated buildout value of each Lot to
the estimated total buildout value for all Parcels within Phase#1.
Based on the Budgeted costs of the Phase#1 Projects, as set forth in Table III-B,the City Council
has determined that the benefit to Phase #1 Assessed Property from the Phase #1 Projects is at
least equal to the Phase#1 Assessments levied on the Phase#1 Assessed Property.
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Upon subsequent divisions of any Parcel, the Phase #1 Assessment applicable to it will then be
apportioned pro rata based on the ratio of the estimated buildout value of each Lot to the total
estimated buildout value for all Parcels. For residential Lots, when final residential building sites
are platted, Phase #1 Assessments will be apportioned proportionately among each Parcel based
on the ratio of the estimated buildout value at the time residential Lots are platted to the total
estimated buildout value for Lots in the platted Parcel, as determined by the Administrator and
confirmed by the City Council.
The Phase#1 Assessment and Annual Installments for each Parcel or Lot located within Phase#1
is shown on the Phase #1 Assessment Roll, attached as Appendix G, and no Assessment shall be
changed except as authorized by this Service and Assessment Plan or the PID Act.
2. Assessment Methodology for Future Phases
When any given Future Phase is developed, and Bonds are issued and w a Reimbursement
Agreement is executed for each Future Phase, this Service and Assessment Plan will be amended
to determine the assessment methodology that results in the imposition of equal shares of the
Actual Costs on Future Phase Assessed Property similarly benefited within that Future Phase.
E. ASSESSMENTS
The Assessments for the Phase #1 Projects Reimbursement Agreement will be levied on each
Parcel or Lot according to the Phase #1 Assessment Roll, as shown in Appendix G. The Annual
Installments for the Phase #1 Projects Reimbursement Agreement will be collected on the dates
and in the amounts shown on the Phase #1 Assessment Roll, subject to revisions made during an
Annual Service Plan Update. Non-Benefited Property will not be subject to any Assessments.
See Appendix F for Phase #1 Assessment per unit, leverage, and estimated tax rate equivalent
calculation details.
F. ADMINISMAI IN E ExPLNSES
The cost of administering the PID and collecting the Annual Installments shall be paid for on a
pro rata basis by each Parcel based on the amount of Assessment levied against the Parcel. The
Administrative Expenses shall be collected as part of and in the same manner as Annual
Installments in the amounts shown on each Assessment Roll, which may be revised based on
actual costs incurred in Annual Service Plan Updates.
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MuniCap 126
VI. TERMS OF THE ASSESSMENTS
A. AMOUNT OF PHASE #1 ASSESSMENTS AND ANNUAL, INSTALLMENTS FOR PARCELS
LOCATED WITHIN PHASE# 1
The Phase #1 Assessment and Annual Installments for each Phase 41 Assessed Property is shown
on the Phase #1 Assessment Roll, attached as Appendix G, and no Phase #1 Assessment shall be
changed except as authorized by this Service and Assessment Plan and the PID Act.
The Annual Installments shall be collected from Phase #1 Assessed Property in an amount
sufficient to pay (i) principal and interest on the Phase #1 Reimbursement Agreement, and (ii) to
pay Administrative Expenses related to Phase #1 of the PID.
B. ANIOI NT OF ASSESSMENTS AND ANNLAL INSTALLMENTS FOR PARCELS LOCATED
WITHIN FUTURE PHASES
As Future Phases are developed, this Service and Assessment Plan will be amended to determine
the Assessment and Annual Installments for each Future Phase Assessed Property located within
such Future Phase (e.g., an Appendix will be added as the Phase #2 Assessment Roll, etc.). The
Assessments shall not exceed the benefit received by the Assessed Property.
C. RF.ALLOCATION OF ASSESSMENTS
1. Subdivision
Upon the subdivision of any Parcel, the Assessment for the Parcel prior to the subdivision shall
be reallocated among the new subdivided Parcels according to the following formula:
A = Bx (C -. D)
Where the terms have the following meanings:
A = the Assessment for each new subdivided Parcel
B = the Assessment for the Parcel prior to subdivision
C = the estimated buildout value to be built on each new subdivided Parcel
D = the sum of the estimated buildout value to be built on all of the new subdivided
Parcels
The calculation of the estimated buildout value to be built on a Parcel shall be performed by the
Administrator and confirmed by the City Council based on the information available regarding
the use of the Parcel.The estimate as confirmed shall be conclusive. The buildout value to be built
on a Parcel may be estimated by net land area and reasonable density ratios.
The sum of the Assessments for all newly subdivided Parcels shall equal the Assessment for the
Parcel prior to subdivision. The calculation shall be made separately for each newly subdivided
---- - - -- -- -- - ---- - ---- -- - MuniCap 127
Parcel. The reallocation of an Assessment for a Parcel that is a homestead under Texas law may
not exceed the Assessment prior to the reallocation and to the extent the reallocation would exceed
such amount, it shall be prepaid by such amount by the party requesting the subdivision of the
Parcels. Any reallocation pursuant to this section shall be reflected in an Annual Service Plan
Update approved by the City Council.
2. Consolidation
Upon the consolidation of two or more Parcels, the Assessment for the consolidated Parcel shall
be the sum of the Assessments for the Parcels prior to consolidation. The reallocation of an
Assessment for a Parcel that is a homestead under Texas law may not exceed the Assessment prior
to the reallocation and to the extent the reallocation would exceed such amount, it shall be prepaid
by such amount by the party requesting the consolidation of the Parcels. Any reallocation pursuant
to this section shall be reflected in an Annual Service Plan Update approved by the City Council.
D. MANDATORI PREPAI MENT OF ASSESSMENTS
1. If a Parcel subject to Assessments is transferred to a party that is exempt from the payment of
the Assessment under applicable law, or if an owner causes a Parcel subject to Assessments
to become Non-Benefited Property, the owner of such Parcel shall pay to the City the full
amount of the principal portion of the Assessment on such Parcel, plus all Prepayment Costs,
prior to any such transfer or act.
2. If at any time the Assessment per unit on a Parcel exceeds the applicable Phase#1 Maximum
Assessment Per Unit shown in this Service and Assessment Plan as a result of any changes in
land use, subdivision, consolidation or reallocation of the Assessment authorized by this
Service and Assessment Plan and initiated by the owner of the Parcel, then such owner shall
pay to the City prior to the recordation of the document subdividing the Parcel the amount
calculated by the Administrator by which the Assessment per Unit for the Parcel exceeds the
applicable Phase#1 Maximum Assessment Per Unit calculated in this Service and Assessment
Plan.
3. The payments required above shall be treated the same as any Assessment that is due and
owing under the PID Act, the Assessment Ordinance, and this Service and Assessment Plan,
including the same lien priority, penalties, procedures, and foreclosure specified by the PID
Act.
E. REDUCTION OF ASSESSMENTS
1. If after all Authorized Improvements to be funded with a series of Bonds and/or by the
Developer under a Reimbursement Agreement have been completed and Actual Costs for such
Authorized Improvements are less than the Actual Costs of the Authorized Improvements used
to calculate the Assessments securing such series of Bonds and/or Reimbursement Agreement,
resulting in excess proceeds being available to redeem Bonds and/or reduce the obligation
owed under a Reimbursement Agreement, and such excess proceeds shall be applied to
redeem Bonds as provided in the Indenture or reduce the obligation owed under a
Reimbursement Agreement then the Assessment securing such Bonds and/or Reimbursement
MuniCap 128
Agreement for each Parcel of Phase#1 Assessed Property shall be reduced by the City Council
pro rata such that the sum of the resulting reduced Assessments for all Assessed Properties
equals the reduced Actual Costs. The Assessments shall not be reduced to an amount less than
the related outstanding series of Bonds and.or Reimbursement Agreement.
2. If all the Authorized Improvements are not undertaken resulting in excess proceeds being
available to redeem Bonds and/ or a need to reduce the obligations under a Reimbursement
Agreement, and such excess proceeds shall be applied to redeem Bonds ands or reduce
obligations under a Reimbursement Agreement, as the case may be, as provided in any
indenture of trust or the terms of a Reimbursement Agreement, then the Assessments and
Annual Installments for each Parcel shall be appropriately reduced by the City Council to
reflect only the amounts required to repay the Bonds and or redeem the obligation under a
Reimbursement Agreement, including interest on the Bonds and/or Reimbursement
Agreement and Administrative Expenses. The City Council may reduce the Assessments and
the Annual Installments for each Parcel in a manner determined by the City Council to be the
most fair and practical means of reducing the Assessments for each Parcel, such that the sum
of the resulting reduced Assessments equals the amount required to repay the Bonds and./or
Reimbursement Agreement, including interest on the Bonds and/or Reimbursement
Agreement and Administrative Expenses. The principal portion of the Assessment for each
Parcel shall be reduced for each Parcel such that the sum of the resulting reduced principal
portion of the Bonds and/or Reimbursement Agreement is equal to the outstanding principal
amount of the Bonds and/or Reimbursement Agreement.
F. PA)MENT oF,ASSESSMENTS
1. Payment in Full
(a) The Assessment for any Parcel may be paid in full at any time. Such payment shall include all
Prepayment Costs. If prepayment in full will result in redemption of Bonds, the payment
amount shall be reduced by the amount, if any, of interest through the date of redemption of
Bonds and reserve funds applied to the redemption under the Trust Indenture, net of any other
costs applicable to the redemption of Bonds.
(b) If an Annual Installment has been billed prior to payment in full of an Assessment,the Annual
Installment shall be due and payable and shall be credited against the payment-in-full amount.
(c) Upon payment in full of the Assessment and all Prepayment Costs, the City shall deposit the
payment in accordance with the Trust Indenture;whereupon,the Assessment shall be reduced
to zero, and the owner's obligation to pay the Assessment and Annual Installments thereof
shall automatically terminate.
(d) At the option of the owner, the Assessment on any Parcel plus Prepayment Costs may be paid
(e) in part. Upon the payment of such amounts for a Parcel, the Assessment for the Parcel shall
be reduced, the Assessment Roll shall be updated to reflect such partial payment, and the
MuniCap 129
obligation to pay the Annual Installment for such Parcel shall be reduced to the extent the
partial payment is made.
2. Payment in Annual Installments
The PID Act provides that an Assessment for a Parcel may be paid in full at any time. If not paid
in full, the PID Act authorizes the Assessment to be paid in installments and additionally allows
the City to collect interest, Annual Collection Costs and other authorized charges in installments.
Upon the issuance of Bonds, an Assessment shall include Additional Interest. An Assessment for
a Parcel that is not paid in full will be collected in Annual Installments each year in the amounts
shown on the Assessment Roll, as updated as provided for herein, which include interest and
Annual Collection Costs. Payment of the Annual Installments shall commence with tax bills
mailed after the levy of the Phase#1 Assessments.
Each Phase #1 Assessment shall be paid with interest of no more than the lesser of the actual
interest rate paid on the Phase#1 Reimbursement Agreement. Interest on the Phase#1 Assessment
relating to the Phase #1 Reimbursement Agreement shall be paid based on an estimated interest
rate of 5.67°o per annum for years 1 through 5 and 5.67%, per annum following the fifth Annual
Installment. The interest on the Phase #1 Reimbursement Agreement shall be paid at a rate not to
exceed five hundred basis points above the highest average index rate for tax-exempt bond
reported in a daily or weekly bond index approved by the City and reported in the month prior to
the establishment of the Assessments and continuing for a period of five years from such date.
Such rate shall then adjust and shall not exceed two hundred basis points above the bond index
rate described above and shall continue until the Assessments are paid in full. The index approved
by the City is the Bond Buyer Index for which the highest average rate during 30 days prior to the
levy of Assessments was 3.67% The City has determined that the Phase #1 Reimbursement
Agreement shall bear interest at the estimated interest rate of 5.670 o per annum for years 1 through
5 and 5.67°o per annum following the fifth Annual Installment, which rates are equal to or less
than the initial maximum allowable rate of interest of 8.67% for years 1 through 5 and equal to
the maximum allowable rate of interest following the fifth Annual Installment, which would be
5.670/,o Furthermore, the Annual Installments may not exceed the amounts shown on the
Assessment Roll. The Assessment Roll is shown as Appendix G. Upon the issuance of Bonds, if
any,to fund the Phase#1 Reimbursement Agreement,the Phase#1 Assessments shall bear interest
at the rate of the Bonds issued to fund the Phase #1 Reimbursement Agreement plus Additional
Interest.
The Annual Installments shall be reduced to equal the actual costs of repaying the Phase #1
Reimbursement Agreement and actual Administrative Expenses (as provided for in the definition
of such term), taking into consideration any other available funds for these costs, such as interest
income on account balances.
The City reserves and shall have the right and option to refund the Bonds, if any are issued, in
accordance with Section 372.027 of the PID Act. In the event of such refunding,the Administrator
shall recalculate the Annual Installments, and if necessary, may adjust, or decrease, the amount of
the Annual Installments so that total Annual Installments of Assessments will be produced in
MuniCap 130
annual amounts that are required to pay the refunding bonds when due and payable as required by
and established in the ordinance and/or the indenture authorizing and securing the refunding bonds,
and such refunding bonds shall constitute Bonds for purposes of this Service and Assessment Plan.
G. COLLECTION OF ANNUAL INSTALLMENTS
No less frequently than annually, the Administrator shall prepare, and the City Council shall
approve, an Annual Service Plan Update to allow for the billing and collection of Annual
Installments. Each Annual Service Plan Update shall include an updated Assessment Roll and a
calculation of the Annual Installment for each Parcel. Administrative Expenses shall be allocated
among Parcels in proportion to the amount of the Annual Installments for the Parcels. Each
Annual Installment shall be reduced by any credits applied under the applicable Trust Indenture,
including capitalized interest, interest earnings on any account balances, and any other funds
available to the Trustee for such purpose. Annual Installments shall be collected by the City in the
same manner and at the same time as ad valorem taxes and shall be subject to the same penalties,
procedures, and foreclosure sale in case of delinquencies as are provided for ad valorem taxes of
the City. The City Council may provide for other means of collecting the Annual Installments to
the extent permitted under the PID Act. The Assessments shall have lien priority as specified in
the PID Act.
Any sale of property for nonpayment of the Annual Installments shall be subject to the lien
established for the remaining unpaid Annual Installments against such property and such property
may again be sold at a judicial foreclosure sale if the purchaser thereof fails to make timely
payment of the non-delinquent Annual Installments against such property as they become due and
payable.
The collection of the first Annual Installment for a Lot or Parcel for the Phase #1 Assessments
shall be due upon the earlier of. (i) January 31, 2025, (ii) with tax bills sent the first October after
issuance of a series of Bonds for the Phase #1 Assessed Property, such that upon the issuance of
Bonds, all Assessments in the applicable phase shall begin collection,or(iii) with tax bills sent the
first October occurring after the expiration of two years from the date of the levy of Assessments
on the Phase #1 Assessed Property, such that all Assessments in the applicable phase begin
collection immediately after the expiration of such two year period. Such first Annual Installment
for a Lot or Parcel for which collection has begun, shall be due by January 31 st of the following
calendar year.
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VII. THE ASSESSMENT ROLL
A. PHASE#1 ASSESSMENT ROLL
The City Council has evaluated each Parcel within Phase #1 (based on numerous factors such as
the applicable zoning for developable area,the use of proposed Homeowner Association Property,
the Public Property, the types of public improvements, and other development factors deemed
relevant by the City Council)to determine the amount of Assessed Property within Phase#1.
The Phase #1 Assessed Property has been assessed for the special benefits conferred upon the
property resulting from the Phase #1 Projects. Table VII-A summarizes the $7,156,340 in special
benefit received by the Phase #1 Assessed Property from the Phase #1 Projects. The par amount
of the Phase �t1 Reimbursement Agreement is $4,661,000 which is equal to the benefit received
by the Phase#1 Assessed Property.Accordingly,the total Assessment to be applied to all the Phase
#1 Assessed Property is $4,661,000 plus annual Administrative Expenses. The Assessment for
each Phase#1 Assessed Property is calculated based on the allocation methodologies described in
Section V. The Phase #1 Assessment Roll is attached hereto as Appendix G.
Table VII-A
Phase #1
Special Benefit Summary
Special Benefit Total Cost
Total Authorized Improvements] $7,081,340
Other Assessment Related Costs:
Assessment levy fee and first year Administrative Expenses $75,000
Subtotal $75,000
Total Special Benefit $7,156,340
Special Benefit:
Total Special Benefit $7,156,340
Projected Special Assessment $4,661,000
Excess Benefit $2,495,340
'See Table III-B for details.
B. FUTL RE PHASES ASSESSMENT ROLL
As Future Phases are developed, this SAP will be amended to determine the Assessment for each
Parcel or Lot located within such Future Phase (e.g. an appendix will be added as the Assessment
Roll for Future Phases).
MuniCap 132
C. ANNI AL ASSESSMENT ROLL UPDATES
The Administrator shall prepare,and shall submit to the City Council for approval,annual updates
to the Phase #1 Assessment Roll in conjunction with the Annual Service Plan Update to reflect
the following matters, together with any other changes helpful to the Administrator or the City
and permitted by the PID Act: (i) the identification of each Parcel (ii) the Phase #1 Assessment
for each Parcel of Phase #1 Assessed Property, including any adjustments authorized by this
Service and Assessment Plan and in the PID Act; (iii) the Annual Installment for the Phase #1
Assessed Property for the year (if the Assessment is payable in installments); and (iv) payments
of the Phae #1 Assessment, if any, as provided by Section VI.F. of this Service and Assessment
Plan.
If Bonds are issued, the Phase #1 Assessment Roll shall be updated, which update may be done
in the next Annual Service Plan Update, to reflect any changes resulting from the issuance of the
Bonds. This update shall reflect the actual interest on the Bonds on which the Annual Installments
shall be paid, any reduction in the Phae#1 Assessments, and any revisions in the Actual Costs to
be funded by the Bonds and Developer funds.
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- - — -- -- - - — - -- MuniCap 133
VIII. MISCELLANEOUS PROVISIONS
A. ADMINISTRATIVE REN IEw
The City may elect to designate a third party to serve as Administrator. The City shall notify
Developer in writing at least thirty (30) days in advance before appointing a third party
Administrator.
To the extent consistent with the PID Act, an owner of an Assessed Parcel claiming that a
calculation error has been made in the Assessment Roll(s),including the calculation of the Annual
Installment, shall send a written notice describing the error to the City not later than thirty (30)
days after the date any amount which is alleged to be incorrect is due prior to seeking any other
remedy. The Administrator shall promptly review the notice, and if necessary, meet with the
Assessed Parcel owner, consider written and oral evidence regarding the alleged error and decide
whether, in fact, such a calculation error occurred.
If the Administrator determines that a calculation error has been made and the Assessment Roll
should be modified or changed in favor of the Assessed Parcel owner,such change or modification
shall be presented to the City Council for approval to the extent permitted by the PID Act. A cash
refund may not be made for any amount previously paid by the Assessed Parcel owner (except
for the final year during which the Annual Installment shall be collected or if it is determined there
are sufficient funds to meet the expenses of the PID for the current year), but an adjustment may
be made in the amount of the Annual Installment to be paid in the following year. The decision of
the Administrator regarding a calculation error relating to the Assessment Roll may be appealed
to the City Council. Any amendments made to the Assessment Roll(s) pursuant to calculation
errors shall be made pursuant to the PID Act.
The decision of the Administrator,or if such decision is appealed to the City Council,the decision
of the City Council shall be conclusive. This procedure shall be exclusive and its exhaustion by
any property owner shall be a condition precedent to any other appeal or legal action by such
owner.
B. TERNIINATION OF ASSESSMENTS
Each Assessment shall be extinguished on the date the Assessment is paid in full,including unpaid
Annual Installments and Delinquent Collection Costs, if any. After the extinguishment of an
Assessment and the collection of any delinquent Annual Installments and Delinquent Collection
Costs, the City shall provide the owner of the affected Parcel a recordable "Notice of the PID
Assessment Termination".
C. AMENDMENTS
Amendments to the Service and Assessment Plan can be made as permitted or required by the
PID Act and under Texas law.
MuniCap 134
The City Council reserves the right to the extent permitted by the PID Act to amend this Service
and Assessment Plan without notice under the PID Act and without notice to property owners of
Parcels:(i) to correct mistakes and clerical errors; (ii) to clarify ambiguities; and (iii) to provide
procedures for the collection and enforcement of Assessments, Prepayment Costs, collection
costs, and other charges imposed by the Service and Assessment Plan; and, (iv) to make any
changes as determined by the City that do not require notice pursuant to the PID Act.
D. ADMINISTRATION AND INTERPRFTATION OF PROVISIONS
The City Council shall administer the PID, this Service and Assessment Plan, and all Annual
Service Plan Updates consistent with the PID Act and shall make all interpretations and
determinations related to the application of this Service and Assessment Plan unless stated
otherwise herein or in the Trust Indenture, such determination shall be conclusive.
E. SEVERABILYI N
If any provision, section, subsection, sentence, clause or phrase of this Service and Assessment
Plan or the application of same to an assessed Parcel or any person or set of circumstances is for
any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of
this Service and Assessment Plan or the application to other persons or sets of circumstances shall
not be affected thereby, it being the intent of the City Council in adopting this Service and
Assessment Plan that no part hereof or provision or regulation contained herein shall become
inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any other part
hereof, and all provisions of this Service and Assessment Plan are declared to be severable for
that purpose.
If any provision of this Service and Assessment Plan is determined by a court to be unenforceable,
the unenforceable provision shall be deleted from this Service and Assessment Plan and the
unenforceable provision shall, to the extent possible, be rewritten to be enforceable and to give
effect to the intent of the City.
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MuniCap 135
APPENDIX A
PID MAP
APPENDIX B
BUDGETED COSTS OF AUTHORIZED IMPROVEMENTS
APPENDIX C
LEGAL DESCRIPTION
APPENDIX D
DIAGRAMS OF THE AUTHORIZED IMPROVEMENTS
APPENDIX E
PID ASSESSMENT NOTICE
AFTER RECORDING RETURN TO:
1'
NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO
CITY OF BAYTOWN, TEXAS
CONCERNING THE FOLLOWING PROPERTY
STREET ADDRESS
LOT TYPE PRINCIPAL ASSESSMENT: $
As the purchaser of the real property described above, you are obligated to pay assessments
to the City of Baytown, Texas (the "City"), for the costs of a portion of a public improvement or
services project (the "Authorized Improvements") undertaken for the benefit of the property within
the Bay Creek Public Improvement District (the "District") created under Subchapter A, Chapter
372, Local Government Code.
AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE
AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE
ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL
INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE
AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND
DELINQUENCY COSTS.
The exact amount of the assessment may be obtained from the City. The exact amount of
each annual installment will be approved each year by the City Council in the annual service plan
update for the district. More information about the assessments, including the amounts and due
dates, may be obtained from the City.
Your failure to pay any assessment or any annual installment may result in penalties and
interest being added to what you owe or in a lien on and the foreclosure of your property.
To be included in separate copy of the notice required by Section 5.0143,Tex. Prop. Code,to be executed at the closing
of the purchase and sale and to be recorded in the deed records of Harris County.
[The undersigned purchaser acknowledges receipt of this notice before the effective date of
a binding contract for the purchase of the real property at the address described above.
DATE: DATE:
SIGNATURE OF SIGNATURE OF
PURCHASER PURCHASER
The undersigned seller acknowledges providing this notice to the potential purchaser before
the effective date of a binding contract for the purchase of the real property at the address described
above.
DATE: DATE:
SIGNATURE OF SELLER SIGNATURE OF SELLER]2
2 To be included in copy of the notice required by Section 5.014,Tex. Prop.Code,to be executed by seller in accordance
with Section 5.014(a-1),Tex. Prop.Code.
Signature Page to Initial Notice
of Obligation to Pay Improvement District Assessment
[The undersigned purchaser acknowledges receipt of this notice before the effective date of
a binding contract for the purchase of the real property at the address described above. The
undersigned purchaser acknowledged the receipt of this notice including the current information
required by Section 5.0143, Texas Property Code, as amended.
DATE: DATE:
SIGNATURE OF SIGNATURE OF
PURCHASER PURCHASER
STATE OF TEXAS §
COUNTY OF HARRIS §
The foregoing instrument was acknowledged before me by and
, known to me to be the person(s) whose name(s) is/are subscribed to the
foregoing instrument and acknowledged to me that he or she executed the same for the purposes
therein expressed.
Given under my hand and seal of office on this , 20
Notary Public, State of Texas13
s To be included in separate copy of the notice required by Section 5.0143,Tex. Prop. Code,to be executed at the closing
of the purchase and sale and to be recorded in the deed records of Harris County.
Purchaser Signature Page to Final Notice with Current Information
of Obligation to Pay Improvement District Assessment
The undersigned seller acknowledges providing a separate copy of the notice required
by Section 5.014 of the Texas Property Code including the current information required by
Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real
property at the address above.
DATE: DATE:
SIGNATURE OF SELLER SIGNATURE OF SELLER
STATE OF TEXAS §
COUNTY OF HARRIS §
The foregoing instrument was acknowledged before me by and
, known to me to be the person(s) whose name(s) is/are subscribed to the
foregoing instrument and acknowledged to me that he or she executed the same for the
purposes therein expressed.
Given under my hand and seal of office on this , 20
Notary Public, State of Texas]4
4 To be included in separate copy of the notice required by Section 5.0143,Tex. Prop. Code,to be executed at the
closing of the purchase and sale and to be recorded in the deed records of Harris County.
Seller Signature Page to Final Notice with Current Information
of Obligation to Pay Improvement District Assessment
APPENDIX F
ASSESSMENT PER UNIT, PROJECTED LEVERAGE AND PROJECTED TAX RATE
EQUIVALENTS
Appendix F
A) Lot Types
For purposes of calculating and allocating Assessments, the Phase #1 Assessed Property has been
classified in one of two Lot Types.
"Lot Type 1" means lots identified as such on the Assessment Roll, being lots typically with a
Lot width of approximately 55 feet as provided by the development standards shown in the
Development Agreement.
"Lot Type 2" means lots identified as such on the Assessment Roll, being lots typically with a
Lot width of approximately 50 feet as provided by the development standards shown in the
Development Agreement.
B) Proposed Development
The following table shows the proposed residential units to be developed within the PID.
Table F-1
Proposed Development within the PID
Description Proposed Development
55 Ft Lots 62 Units
50 Ft Lots 210 Units
Total 272 Units
Table F-2 shows the proposed residential units to be developed within Phase 41.
Table F-2
Proposed Development—Phase#1
Description Proposed Development
55 Ft Lots 35 Units
50 Ft Lots 108 Units
Total 143 Units
Table F-3 sets forth the Assessment per unit for each Lot Type within Phase u 1.
Table F-3
Assessment per Unit—Phase#1
Estimated Percentage of
Planned Projected Total Total Average
No. of Home Value Buildout Buildout Total Annual Assessment
Lot Type Units per Unit Value Value Assessment Installment Per Unit
55 Ft Lots 35 $365,000 $12,775,000 26.68% $1,243,745 $102,159 $35,535.56
50 Ft Lots 108 $325,000 $35,100,000 73.32% $3,417,255 $280,686 $31,641.25
143 $47,875,000 100.00% $4,661,000 $382,845
The projected leverage for each Parcel or Lot within Phase#1, calculated based on the estimated
finished lot values and projected average home values for each Lot Type is shown in Table F-4.
Table F-4
Projected Leverage—Phase#1
Planned Estimated Projected Leverage
Lot Type No. of Finished Lot Average Home Assessment Leverage (Home
Units Value per unit Value per Unit Per Unit (Lot Value) Value)
55 Ft Lots 35 $73,000 $365,000 $35,535.56 2.05 10.27
50 Ft Lots 108 $65,000 $325,000 $31,641.25 2.05 10.27
The projected tax rate equivalent per unit for Parcel or Lot within Phase #1, calculated based on
the estimated finished lot values and projected average home values for each Lot Type is shown
in Table F-5.
Table F-5
Estimated Tax Rate Equivalent per unit— Phase#1
Projected Average Tax Rate Tax Rate
Planned Estimated Projected Annual Equivalent Equivalent(per
No. of Finished Lot Home Value Installment per (per$100 $100 Home
Lot Type Units Value per unit per unit unit Lot Value) Value)
55 Ft Lots 35 $73,000 $365,000 $2,919 $3.9984 $0.7997
50 Ft Lots 108 $65,000 $325,000 $2,599 $3.9984 $0.7997
The Assessment and Annual Installments for each Parcel or Lot located within Phase#1 are shown
on the Phase #1 Assessment Roll, attached as Appendix G, and no Assessment shall be changed
except as authorized by this Service and Assessment Plan and the PID Act.
APPENDIX G
PROPOSED PHASE #1 ASSESSMENT ROLL
Appendix G-1
Proposed Phase#1 Assessment Roll
Parcels Part of 040-221-000-0204,Part of 040-221-000-0541
Projected Buildout Value $47,875,000
Assessment $4,661,000
Administrative
Year Principal' Interest' Expenses',' Total Annual Installment
1 $75,000 $264,279 $45,000 $384,279
2 $78,000 $260,026 $45,900 $383,926
3 $82,000 $255,604 $46,818 $384,422
4 $85,000 $250,954 $47,754 $383,709
5 $88,000 $246,135 $48,709 $382,844
6 $92,000 $241,145 $49,684 $382,829
7 $96,000 $235,929 $50,677 $382,606
8 $101,000 $230,486 $51,691 $383,176
9 $105,000 $224,759 $52,725 $382,483
10 $110,000 $218,805 $53,779 $382,584
11 $115,000 $212,568 $54,855 $382,423
12 $120,000 $206,048 $55,952 $382,000
13 $126,000 $199,244 $57,071 $382,315
14 $132,000 $192,100 $58,212 $382,312
15 $138,000 $184,615 $59,377 $381,992
16 $144,000 $176,791 $60,564 $381,355
17 $151,000 $168,626 $61,775 $381,401
18 $159,000 $160,064 $63,011 $382,075
19 $167,000 $151,049 $64,271 $382,320
20 $175,000 $141,580 $65,557 $382,136
21 $184,000 $131,657 $66,868 $382,525
22 $193,000 $121,225 $68,205 $382,430
23 $203,000 $110,282 $69,569 $382,851
24 $213,000 $98,771 $70,960 $382,732
25 $224,000 $86,694 $72,380 $383,074
26 $235,000 $73,994 $73,827 $382,821
27 $248,000 $60,669 $75,304 $383,973
28 $261,000 $46,607 $76,810 $384,417
29 $274,000 $31,809 $78,346 $384,155
30 $287,000 $16,273 $79,913 $383,186
Total $4,661,000 $4,998,785 $1,825,564 $11,485,349
'The principal and interest amounts represent the debt service requirements of the Phase#I Reimbursement Agreement.The
interest is calculated using an estimated interest rate of 5.670o per annum for years I to 5 and 5.6706 per annum thereafter.
'-Administrative Expenses are estimated and will be updated each year in the Annual Service Plan Updates.Assumes a 20o increase
per year.
3First Year Administrative Expenses are being funded by the Developer.
Appendix G-2
Proposed Phase#1 Assessment Roll by Lot Type
Parcel Lot Type 1 (55 Ft)
Projected Buildout Value $12,775,000
Percent of Total Assessment 26.68%
Assessment $35,536
Administrative Total Annual
Year Principal' Interest' Expenses2,3 Installment
1 $572 $2,015 $343 $2,930
2 $595 $1,982 $350 $2,927
3 $625 $1,949 $357 $2,931
4 $648 $1,913 $364 $2,925
5 $671 $1,877 $371 $2,919
6 $701 $1,838 $379 $2,919
7 $732 $1,799 $386 $2,917
8 $770 $1,757 $394 $2,921
9 $801 $1,714 $402 $2,916
10 $839 $1,668 $410 $2,917
11 $877 $1,621 $418 $2,916
12 $915 $1,571 $427 $2,912
13 $961 $1,519 $435 $2,915
14 $1,006 $1,465 $444 $2,915
15 $1,052 $1,408 $453 $2,912
16 $1,098 $1,348 $462 $2,907
17 $1,151 $1,286 $471 $2,908
18 $1,212 $1,220 $480 $2,913
19 $1,273 $1,152 $490 $2,915
20 $1,334 $1,079 $500 $2,913
21 $1,403 $1,004 $510 $2,916
22 $1,471 $924 $520 $2,916
23 $1,548 $841 $530 $2,919
24 $1,624 $753 $541 $2,918
25 $1,708 $661 $552 $2,921
26 $1,792 $564 $563 $2,919
27 $1,891 $463 $574 $2,927
28 $1,990 $355 $586 $2,931
29 $2,089 $243 $597 $2,929
30 $2,188 $124 $609 $2,921
Total $35,536 $38,111 $13,918 $87,565
'The principal and interest amounts represent the debt service requirements of the Phase#1
Reimbursement Agreement.The interest is calculated using an estimated interest rate of 5.670o per
annum for years 1 to 5 and 5.670o per annum thereafter.
2Administrative Expenses are estimated and will be updated each year in the Annual Service Plan
Updates.Assumes a 20o increase per year.
3First)ear Administrative Expenses are being funded by the Developer.
Appendix G-3
Proposed Phase#1 Assessment Roll by Lot Type
Parcel Lot Type 2 (50 Ft)
Projected Buildout Value $35,100,000
Percent of Total Assessment 73.32%
Assessment $31,641
Administrative Total Annual
Year Principal' Interest' ExpensesZ,3 Installment
1 $509 $1,794 $305 $2,609
2 $530 $1,765 $312 $2,606
3 $557 $1,735 $318 $2,610
4 $577 $1,704 $324 $2,605
5 $597 $1,671 $331 $2,599
6 $625 $1,637 $337 $2,599
7 $652 $1,602 $344 $2,597
8 $686 $1,565 $351 $2,601
9 $713 $1,526 $358 $2,596
10 $747 $1,485 $365 $2,597
11 $781 $1,443 $372 $2,596
12 $815 $1,399 $380 $2,593
13 $855 $1,353 $387 $2,595
14 $896 $1,304 $395 $2,595
15 $937 $1,253 $403 $2,593
16 $978 $1,200 $411 $2,589
17 $1,025 $1,145 $419 $2,589
18 $1,079 $1,087 $428 $2,594
19 $1,134 $1,025 $436 $2,595
20 $1,188 $961 $445 $2,594
21 $1,249' $894 $454 $2,597
22 $1,310 $823 $463 $2,596
23 $1,378 $749 $472 $2,599
24 $1,446 $671 $482 $2,598
25 $1,521 $589 $491 $2,601
26 $1,595 $502 $501 $2,599
27 $1,684 $412 $511 $2,607
28 $1,772 $316 $521 $2,610
29 $1,860 $216 $532 $2,608
30 $1,948 $110 $542 $2,601
Total $31,641 $33,934 $12,393 $77,968
'The principal and interest amounts represent the debt service requirements of the Phase#I
Reimbursement Agreement.The interest is calculated using an estimated interest rate of 5.670 o per
annum for years 1 to 5 and 5.6710 per annum thereafter.
'-Administrative Expenses are estimated and will be updated each year in the Annual Service Plan
Updates.Assumes a 20 o increase per year.
'First year Administrative Expenses are being funded by the Developer.